Dixon Hospitality Group has been announced as the Preferred Bidder for seven of Keystone Group’s Sydney-based venues including Cargo Bar, Bungalow 8, The Rook, The Winery, Manly Wine, Chophouse Sydney and Kingsleys Woolloomooloo. The Group’s venues went up for sale in June this year when it was placed into receivership.

Receiver Morgan Kelly said that Dixon Group will meet with management at each of the venues this week as part of the remaining due diligence process.

“Other shortlisted parties have been advised of the selection of the Dixon Group as Preferred Bidder at this stage,” Morgan Kelly said.

GM of Marketing at Dixon Hospitality Group, Marcia English, told drinks bulletin that the Group is confident that the sale will go through.

English said that the purchase forms part of Dixon’s growth strategy for the next six to twelve months and confirmed that the Group has no plans to change any of the venues.

“I think it will help us grow and growth is key to our strategy so it’s really important. The venues that have been selected have been handpicked because they are really well regarded and they sit exactly within our strategy and complement what we’ve already got.

“The great thing about these venues is that they operate really well. We’re hoping that a lot of the fabulous staff will stay on and we’ve bought the venues because we love them the way they are – they’re really well-operated and profitable venues.”

Dixon Group currently owns 37 venues in Melbourne and Sydney with 505 Wine Room, Auburn Hotel, Beer Deluxe Albury, the Imperial Hotel, O’Connell’s, Queenies, the Tap House, and The Norfolk.

Morgan Kelly said that it is also in final stage negotiations with separate bidders for the sale of the remaining venues, including Chophouse Perth, Gazebo, Jamie’s Italian, Kingsleys Brisbane, and Sugarmill Hotel.

“The decision to separate the Keystone Group assets for sale was taken to maximise sale proceeds.”

Image: Bungalow 8 in Sydney