Public Hospitality Group has lost control of five Sydney pubs after private credit investor Muzinich & Co pulled out of a refinancing deal.

Muzinich has called in FTI Consulting, an insolvency specialist, to run Oxford House, The Exchange in Darlinghurst, The Norfolk, The Strand Hotel and Camelia Grove Hotel.

Muzinich holds more than $100 million of Public Hospitality’s debt secured against the five pubs and their operating company. The Australian Financial Review reports the lender ignored an offer made last week by Archibald Capital to buy the pubs and repay the debts. Archibald Capital said its deal would leave creditors $50 million better off than the receivership.

The appointment was made late on Friday, with 150 staff at Public Hospitality told on Monday.

In a note distributed to suppliers and staff, the administrators said they intended to continue trading the businesses and were working to minimise the impact of any ­appointment. Suppliers were told to close all existing accounts in the names of companies and open new accounts for new debts.

Several other venues Public Hospitality manages or has invested in are not under control of administrators, including Noah’s Backpackers in Bondi, Claridge House in Darlinghurst, a hotel on Bayswater Road, the Empire Hotel in Annandale, the Town Hall in Balmain and the Lady Hampshire in Camperdown.

In addition, holdings in Melbourne, the Clifton in Clifton Hill, Vine in Collingwood, and the Saint in St Kilda, as well as the Beach House in East Ballina remain under Public Hospitality Group founder Jon Adgemis’ control.

Maybe Group splits with Public Hospitality