Franchisor of paint-and-sip business Pinot & Picasso falls into administration

The future of popular paint-and-sip business Pinot & Picasso is uncertain after its master franchisor entered voluntary administration last week.

However, the administrator of the business has confirmed to SmartCompany it will continue to trade during the voluntary administration process.

Veuve Ventures Pty Ltd and seven related entities appointed Sule Arnautovic of Salea Advisory to act as voluntary administrator on Thursday, according to the Australian Securities and Investments Commission.

The entities act as master franchisors for 42 Pinot & Picasso venues across Australia and New Zealand, and operate seven company-owned stores.

Pinot & Picasso bills itself as a “relaxing, beginner-friendly paint and sip experience” for parties and corporate gatherings.

In a statement provided to SmartCompany, Arnautovic said the directors of the companies had identified cost-of-living concerns as a cause for the administration.

They “advised the reason for the administration is largely attributable to a reduction in discretionary consumer spending, as Australians and other customers look to tighten entertainment budgets,” he said.

Arnautovic intends to continue trading the business and has informed franchisees of this decision.

However, some redundancies have already taken place.

At the time of Arnautovic’s appointment, the companies employed around 16 full-time employees and 41 casual employees. Around seven positions have now been made redundant as part of the administration process.

Pinot & Picasso rebranded in July

Founded in 2018 by directors James Crowe and Aaron Carrasco, Pinot & Picasso began as a single studio in Penrith, Sydney, before successfully using the franchise model to expand into every state and territory except the NT.

Beyond Australia, Pinot & Picasso-branded venues now exist in the United Kingdom and New Zealand. Related companies in these territories are not included in the voluntary administration.

The business undertook a major rebrand in July this year, introducing a new logo and colour palette across its franchise network.

“We may look a little different, dare we say a little more modern and cheeky, but nonetheless, we are committed to ensuring we deliver an incredible experience to our guests every week,” the business said at the time.

Arnautovic said he is now undertaking an urgent assessment of the financial position of the companies and will explore both options of restructuring or recapitalising the business via a Deed of Company Arrangement, or selling the business as a going concern.

The first meeting of creditors is set for September 24, while an informal meeting of Pinot & Picasso franchisees was due to take place on Monday, September 16.

In a separate letter to franchisees, seen by SmartCompany, Arnautovic confirmed franchisees will continue to receive payments under their franchise agreements during the administration period while the companies continue to trade. 

“I am moving as quickly as possible to preserve as much of the business and as many jobs as possible,” he told franchisees. 

“For current franchisees and customers, I am aiming to reduce the impacts on business operations and ensure the companies’ business continues as consistently as possible through this period.

“The continued support of customers and franchisees of the companies will maximise the chances of the companies’ business continuing beyond administration and will likely lead to a better outcome for all creditors of the companies,” he added. 

SmartCompany has contacted the company for comment.

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