Keystone Group an Australian Hospitality †Myassignmenthelp.Com

Question: Discuss About the Keystone Group an Australian Hospitality? Answer: Introducation The Keystone group is an Australian hospitality empire that went into receivership. The restaurant and bar business of the company had gone into receivership. The main reason for the failure of the company was increase in the debts and it happened due to the inappropriate management structure of the group (Cummins, 2016). The debts were raised to continue its expansion plan. The executives and the managers were in responsible for the collapse of the company. The company raised debt as it took loans from the creditors and lenders. The main issue of the company is in servicing the debts and difficult to pay the debts. The company has to sale of its major business segments and it has shown the collapse of the company (Connellan, 2016). Solution The failure of the company was due to the increase in the debts. The management team is responsible for the failure of the company. The management used the debt sources in order to invest in the new programs and projects. The increase in the use of the debt sources leads to the increase in the debt level (Sen, 2008). The management team would have controlled the use of the debt sources. The management executives did not manage the debt amounts efficiently and crossed the limits of the financing. The credit amount should be paid, and the use of the debt sources was the main reason for the collapse of the company. The management should have managed all the business operations, managed the debt amounts and utilizing the assets in an appropriate manner. References Cummins, M. (2016).Keystone collapse: Jamie Oliver and Sydney's A-list find pubs and food don't mix. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/keystone-collapse-jamie-oliver-and-sydneys-alist-find-pubs-and-food-dont-mix-20160630-gpvl9j [Accessed 15 May 2017]. Connellan, S. (2016).Australian Hospitality Empire Keystone Group Has Gone Into Receivership. [online] Concreteplayground.com. Available at: https://concreteplayground.com/sydney/food-drink/food-2/australian-hospitality-empire-keystone-group-has-gone-into-receivership/ [Accessed 15 May 2017]. Sen, M. (2008).Business Management. 1st ed. New Delhi: Global Media Publications.