Danny Doolans on Auckland's Viaduct was one be the first bars to open following Covid lockdown restrictions. Photo / Alex Robertson
Danny Doolans on Auckland's Viaduct was one be the first bars to open following Covid lockdown restrictions. Photo / Alex Robertson
The owner of Auckland bar Danny Doolans is selling all nine of its bars following a strategic review, including the iconic Irish pub.
The listed owner Good Spirits Hospitality said in an update to the market on Wednesday afternoon that it was seeking bids for all of the venues itowned by the end of February.
Its establishments included Auckland’s The Cav, Citizen Park, Union Park, The Fox, The Cellar Bar, Botany Commons, the Doolan Brothers venue in Ellerslie and the Cock & Bull in Hamilton - all were on the block.
The Doolan Brothers venue in Newmarket was not for sale because it was closed.
Good Spirits said all of the venues were profitable despite reduced opening hours because of labour shortages.
Its venues earned a total $10.7 million in revenue in the first five months of this financial year, with expectations for that to reach $25.5m for the full year ending June.
Dancing inside Danny Doolan's on the Auckland Viaduct. Photo / Supplied
At its annual meeting in November, the company’s chairman Matt Adams said eight months of Covid lockdowns and restrictions wiped $9.8m from its books in the 2022 financial year, resulting in a net loss.
He said the company had required support from its bankers to stay afloat and was now at a “crossroad”, with its financier Pacific Dawn “looking for a concrete plan to address the current financial position of the company”.
In October, the company appointed an advisor to consider a way forward, which included a possible merger with another hospitality operator or a sale of its assets. The latter option was chosen.
In August this year, Good Spirits received approval from its financier to spend $250,000 buying another Auckland viaduct venue called The Velvet Bar.
It opened a London-style pub in the Viaduct called the Fox in December 2021, which cost around $2m to refurbish.
Before that, it considered buying all of Nourish Group’s venues, including the Auckland Viaduct bar and restaurant institution Soul Bar, but the deal fell through.
At the recent annual meeting, Adams discussed the attempted acquisition, saying pursuing it was in the best interests of shareholders because it “would have given the group the scale it has historically lacked,” but the deal was disrupted by Omicron restrictions and ultimately fell over.
Good Spirits spent $1.5m on the deal despite it not going ahead.
