Keystone Hospitality Group fails, celebrity chef Jamie Oliver buys back Italian restaurants in Australia

Since the Keystone Hospitality Group took over the six Italian restaurants of celebrity chef Jamie Oliver in Australia, the company failed to turn around the restaurants. To save the franchise chain, Oliver is buying back the restaurants.

Morgan Kelly, the receiver of Keystone, agreed with Oliver’s decision to buy back the six Australian franchises of the Naked Chef, including his Italian chain in Sydney, Perth, Canberra, Brisbane, Adelaide and Parramatta. Kelly, from Ferrier Hodgson, took over Keystone in June after it failed to renegotiate an $80 million loan with financiers, Olympus Capital and KKR, a private equity group, Sydney Morning Herald reports.

Kelly says the celebrity chef regaining control of the restaurants “is an exciting outcome for the restaurant staff and patrons.” He says the franchise could go “from strength to strength under the direct management of the Jamie Oliver Group.”

Oliver says Keystone’s failure does not reflect the performance or success of the restaurants. The franchise has 42 restaurants in the UK and more than 25 internationally. The chef points out that “Jamie’s Italian prides itself serving delicious Italian classic with a Jamie twist.”

He adds that food served in the Australian outlets are made with the bet, sustainable and locally sourced ingredients, including fresh pasta made on site daily.

There were actually significant investor interest to purchase Jamie’s Italian chain, but Oliver was concerned some of the bidders may not meet the business’s benchmarks, The Australian reports. Among those interested was the Urban Purveyor Group, owner of the Fratelli Fresh chain.

Taking over the restaurants would allow Oliver to invest more time and money in people and restaurants, celebrate Australian produce and be even more creative.