Merivale steps down from restaurant association, Hemmes tells staff he is ‘devastated’

Hospitality giant Merivale has stepped down from the board of the Australian Restaurant and Cafe Association following claims of sexual harassment, exploitation and drug use at the company’s high-profile Sydney venues as chief executive Justin Hemmes says he is “devastated” by the allegations.

Hemmes wrote to more than 5000 Merivale staff on Tuesday afternoon to assure them the company was taking allegations revealed by The Sydney Morning Herald, Good Food and The Age seriously.

Merivale chief executive Justin Hemmes.Credit: Dominic Lorrimer

“I am devastated to read the allegations against Merivale concerning our staff and our culture and sincerely apologise for any distress and concern that you may be feeling,” he said.

“Please be assured that we are taking this matter very seriously and do not condone, encourage or tolerate any of the behaviours which have been alleged. We will continue to work to address every allegation made within today’s article.”

Hemmes said he was immensely proud of Merivale’s business. The company runs more than 70 venues across NSW and Victoria, including the Ivy, Totti’s, Establishment and Mr Wong’s.

“Utmost in my mind is my concern for all of you, and especially for the distress caused by the aspersions that have been cast on those who work and have worked in the past, at Merivale and within the hospitality industry in general,” he said.

“I am overwhelmingly sad that today’s article broadly denigrates everything that we do.”

Hemmes claimed the company was “continuing to work to have some of the inaccuracies and falsehoods corrected”.

Following the Herald investigation, which revealed claims the company exploited women, encouraged them to have sex with customers, perpetuated sexual harassment and facilitated frequent drug use, Merivale representative and chief people officer Jessica Furolo stepped down from the board of the Australian Restaurant and Cafe Association on Tuesday morning.

Furolo was a founding member of the hospitality advocacy group alongside prominent industry figures Neil Perry, Chris Lucas and Shane Delia. The association represents some of the industry’s biggest players, including hotel giant Accor.

The association was established in May to lobby for legislation and policy change to support the hospitality industry.

Furolo’s departure is ACRA’s second major loss due to sexual harassment allegations: in August, former Swillhouse CEO Anton Forte resigned in response to an investigation by The Sydney Morning Herald and Good Food of claims of sexual assault, drug use and discrimination at its six venues, including Restaurant Hubert and the Baxter Inn.

“The Merivale representative on the ARCA Board will be stepping down pending the determination of the investigation,” ARCA chief executive Wes Lambert said on Tuesday.

“ARCA in no way condones unsafe workplaces, sexual harassment or discrimination and it has no place in the hospitality industry.”

Merivale and Hemmes have become political players in their own right. In 2019, he hosted a $3300-a-head fundraiser for the Liberal Party at his Vaucluse mansion, The Hermitage. In 2021-22 he donated $100,000 to the NSW Liberals and $300,000 (from the company Hemmes Trading) to the federal Liberal Party. Last year, Liberal senator Andrew Bragg revealed the Christmas party he was hosting was sponsored by Merivale.

The NSW Liberal Party and federal Liberal Party were contacted for comment on whether they would continue to accept donations and sponsorships from the company.

Merivale has appointed one of Australia’s leading human rights and discrimination lawyers Kate Eastman, SC, to lead an investigation into allegations revealed by this masthead.

Hemmes told staff there “are NO repercussions for speaking up, but rather it is absolutely encouraged”.

“We are living in a changing world, which in so many important ways is for the better,” he said.

Prabha Nandagopal, human rights lawyer and founder of SafeSpace@elevate

ARCA’s own sexual harassment and workplace culture consultant Prabha Nandagopal, a former senior legal adviser to the Australian Human Rights Commission, said hospitality companies had been slow to take up training services following the Swillhouse investigation in August.

“Hospitality is having its moment of reckoning, and the more investigations like this that shine a light on what’s happening, I think it emboldens other people to speak out as well about their experiences,” the SafeSpace@elevate founder said.

“I think we’ve seen a big shift in community expectations. There are enormous legal, financial and reputational risks. This type of behaviour, even if it has been normalised for some time in hospitality, needs to stop.”

Daisy Tulley, the general manager at Mucho, the group behind World’s 50 Best Bar Cantina OK!, said hospitality groups were continuing to “prioritise protecting the perpetrator over protecting the victim”.

“It’s an ongoing issue, and it will continue to be an ongoing issue with the dominance of men in management positions,” she said.

Tulley said many of the women working for Mucho have experienced sexual harassment while working in venues across the Sydney hospitality industry.

“I don’t understand why so many things are allowed to fly in this industry, that wouldn’t be anywhere else,” she said.

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