Three Wagamama restaurants in Dublin have closed their doors, leaving 106 employees without work. The closures, which took effect immediately, come after receivers appointed to part of the Press Up group failed to reach an agreement with the UK-based chain on restructuring their franchise agreement.

The three locations, situated in Dundrum, South King Street, and Blanchardstown, were all shut down as a result of the failed negotiations. The receivers, who were appointed last week by Cheyne Capital, a London-based investment firm, are now in the process of engaging with the employees to explain the impact of the closures on their employment. While the possibility of redeployment within Press Up is being considered, it remains uncertain what the future holds for the affected staff.

Press Up Seeks New Tenants For Closed Wagamama Locations

Despite the closure of the Wagamama restaurants, Press Up has secured agreements with the landlords of the South King Street and Blanchardstown locations, allowing these sites to continue operating as part of the group. The company is actively seeking new restaurant concepts to fill these venues, and they anticipate having new offerings ready in the next four to eight weeks.

However, no agreement was reached regarding the Dundrum location, which is a significant setback for Press Up's plans. The group is not in a position to continue trading at Dundrum Town Centre, according to a statement released by the company.

The Impact of Cheyne Capital's Investment

This recent development follows the takeover of the Press Up Hospitality group by Cheyne Capital last week. The investment firm, which aims to inject fresh capital into the business, has taken a majority equity stake in Press Up as part of a debt-for-equity swap. This deal has resulted in Paddy McKillen Jr., one of the co-founders, retaining a 10% stake in the business.

The investment by Cheyne Capital signifies a significant change in the ownership structure of Press Up. The company, founded over a decade ago by McKillen Jr. and Matt Ryan, is now under the control of a new owner with ambitious plans for the future. While the full scope of Cheyne's investment remains undisclosed, it is estimated to be around €20 million. The investment aims to provide Press Up with the necessary resources to navigate the current economic challenges and ensure its long-term sustainability.

Receivership and Restructuring

Cheyne Capital's appointment of receivers to four entities that manage 12 venues under the Elephant & Castle, Wagamama, and Wowburger brands further highlights the restructuring efforts underway at Press Up. The receivers, Shane McCarthy and Cormac O'Connor from KPMG, are tasked with overseeing the operations of these entities. They are currently in discussions with landlords and creditors to determine the future course of action for the affected venues.

The receivership process has been triggered by the financial challenges facing Press Up. Latest accounts filed for Portalon Ltd, the operator of Wagamama on South King Street, Dundrum, and Blanchardstown in Dublin, show that the company had accumulated losses of €250,443 by the end of May 2021. This financial strain has prompted the need for restructuring and the appointment of receivers to ensure the stability of the company.

Other Press Up Venues Remain Operational

While the Wagamama closures represent a significant development for Press Up, the company insists that operations are proceeding as usual at over a dozen other venues. These include well-known brands such as Angelina's, Captain Americas, Doolally, Isabelle's, MacKenzie's, The Grayson, and Mama Yo restaurants, as well as the Stella Cinema in Rathmines. The group also operates seven bars, including the Workman's Club on Wellington Quay, the Vintage Cocktail Club in Temple Bar, and the Foxhunter in Lucan. Notably, the Wowburger venue on Parnell Street in Dublin has also been closed.

The Future of Wagamama in Ireland

The future of the Wagamama brand in Ireland remains unclear following the closure of the Dublin restaurants. While Wagamama is ultimately owned by The Restaurant Group, a British firm that also operates other brands, the decision to close the Dublin locations suggests a re-evaluation of the franchise's presence in the Irish market. Whether Wagamama will attempt to continue in Dundrum with a new operator or pursue other options in Ireland is yet to be determined. The recent closures and the restructuring efforts underway at Press Up represent a critical juncture for the company. The future of the group and its various brands is now in the hands of Cheyne Capital and the receivers appointed to oversee the restructuring process. As the situation unfolds, it will be interesting to observe how these changes impact the Irish hospitality scene and the fate of the iconic Wagamama brand.

The Wagamama Saga: A Tale of Two Chains

The closures of the Wagamama restaurants highlight the complex and often unpredictable nature of the hospitality industry. While Press Up has been a dominant force in the Irish market for over a decade, the recent challenges faced by the group demonstrate the need for adaptability and financial stability in today's competitive landscape. The closure of the Wagamama restaurants also serves as a reminder of the global nature of the hospitality industry, with franchise agreements playing a crucial role in expanding brands across borders. The impact of these closures is not limited to the Dublin restaurant scene but has broader implications for the future of the Wagamama brand in Ireland. As the dust settles on these closures, it will be interesting to observe how Press Up responds to these challenges and navigates the evolving landscape of the Irish hospitality industry.

What Next for Press Up? A New Chapter Begins

Press Up's journey is far from over. As the company embarks on a new chapter under Cheyne Capital's ownership, the focus will be on ensuring the financial stability of the business and exploring new opportunities for growth. While some venues have been impacted by the restructuring efforts, the core of Press Up's operations remains intact, with a strong portfolio of popular restaurants and bars.

The decision to close the Wagamama restaurants, although challenging, reflects a strategic move by Press Up to refocus its efforts on core brands and capitalize on new opportunities. As the company evolves, it will be important to monitor its progress and analyze the impact of Cheyne Capital's investment on the future direction of Press Up Hospitality.