Press Up's New Chapter: Cheyne Capital Takes Control

London-based lender Cheyne Capital has formally taken control of Press Up Hospitality Group and plans to invest fresh capital into a business founded more than a decade ago by Paddy McKillen jnr and Matt Ryan. This move marks a significant shift for the Irish restaurant scene, as Cheyne’s investment, part of a debt-for-equity swap, is believed to be about €20 million.

Restructuring and Receivership

As part of the restructuring process, Cheyne has appointed KPMG’s Shane McCarthy and Cormac O’Connor as receivers to three restaurant chains within the Press Up group. These are Elephant & Castle, Wagamama, and Wowburger. While the majority of the Press Up Group, including well-known bars like the Workman’s Club in Temple Bar, is not impacted, about 15 restaurants across these three brands are now under receivership. This means that Cheyne will be managing the financial affairs of these restaurants, with the goal of ensuring they remain profitable.

The Impact on Press Up

The restructuring process is expected to have a significant impact on Press Up. The group’s 935 staff have been informed that all of the venues will remain open with the exception of Wowburger on Parnell Street in Dublin, which is to close. Staff at Wowburger will be offered roles at other venues in the group. This news is a significant blow for fans of the Wowburger brand, which has been a popular spot for budget-friendly burgers for many years. However, it is a sign that Cheyne is committed to making the necessary changes to ensure the long-term viability of the Press Up group.

McKillen Jr's Role

Paddy McKillen jnr, co-founder of Press Up, will remain as a minority shareholder with the chain, but he and Matt Ryan have both stepped down from the management of the business. Mr Ryan will have no stake in the business, while it is understood that Mr McKillen jnr’s holding will be below 10 per cent. This change in leadership reflects the significant shift in control that has taken place, with Cheyne now taking the reins.

A Look at the Past

The story of Press Up’s growth is one of rapid expansion and a knack for capturing the pulse of Dublin’s dining scene. Founded in 2007 with the Captain America’s restaurant on Grafton Street, the group quickly expanded its portfolio to include brands such as Wagamama and the Workman’s Club. Press Up also gained a reputation for innovative and trendy concepts, including the Stella Cinema in Rathmines and Mama Yo, a Chinese restaurant on Camden Street. However, the group’s aggressive expansion strategy and the challenges posed by the Covid-19 pandemic ultimately led to financial difficulties.

The Future of Press Up

The takeover of Press Up by Cheyne Capital marks a new chapter for the Irish hospitality group. Cheyne’s investment and its restructuring plans are likely to bring significant changes to the group, but it remains to be seen what impact these changes will have on the individual brands and the broader restaurant scene in Dublin. It is possible that the group will become more focused on profitability and less on expansion, but only time will tell what the future holds for Press Up.

What This Means for Dublin's Restaurant Scene

Cheyne’s takeover of Press Up is likely to have a significant impact on the restaurant scene in Dublin. The group’s portfolio of venues is a major player in the city’s dining and nightlife landscape. The group’s restructuring, with the appointment of receivers and the closure of Wowburger on Parnell Street, is a signal that the market is becoming more competitive. It remains to be seen whether Cheyne’s focus on profitability will lead to changes in the group’s offerings, but it is likely that there will be some impact on the landscape of Dublin’s restaurant scene in the years to come.

A Look at the Numbers

The size of Cheyne’s investment has not been disclosed, but it is believed to be about €20 million. The Currency business website last week reported that Cheyne was owed €45 million by Press Up. This demonstrates the scale of the financial challenges that Press Up was facing. The group’s rapid expansion, while successful in the short term, ultimately led to unsustainable debt levels. The takeover by Cheyne marks a turning point for the group, as it seeks to stabilize its financial position and ensure its long-term viability.

What's Next?

The coming months will be crucial for Press Up as it navigates this new chapter under Cheyne Capital’s leadership. The restructuring plans, including the appointment of receivers, are likely to lead to further changes in the group’s portfolio. It remains to be seen how these changes will impact the group’s brands and its overall business model. One thing is certain: the takeover of Press Up by Cheyne Capital is a significant event in the Irish hospitality sector, with the potential to reshape the restaurant scene in Dublin and beyond.

Cheyne Capital's Investment Plans

Cheyne plans to invest fresh capital into Press Up, putting it on a sustainable financial footing and providing a platform for growth. The focus will be on delivering a quality experience to all its loyal customers as a leading hospitality group in Ireland. This suggests a strategic approach to ensure Press Up’s future success, emphasizing both financial stability and customer satisfaction. However, the specific strategies and plans for growth remain to be revealed. The success of this investment will hinge on Cheyne’s ability to address the group’s financial challenges while maintaining the quality and appeal that made Press Up such a popular destination for Dubliners and tourists alike.

Cheyne's History with Press Up

Cheyne has been a supportive partner to Press Up for a number of years, providing a loan in 2021 to help the group navigate the challenging economic climate. The decision to take control of the business reflects a belief in the potential of Press Up, despite its recent struggles. This partnership signifies a commitment to the Irish market, with Cheyne investing in a leading hospitality group with a strong brand and a loyal customer base. The success of this partnership will depend on Cheyne’s ability to work with Press Up’s existing team and navigate the challenges of the hospitality industry in the years to come.