Lume executive chef Diego Huerta Chabert walks over toxic workplace claims

The South Melbourne restaurant at the centre of a toxic workplace saga was $1m in debt, owing money to suppliers and staff.

Diego Huerta Chabert quit as executive chef of South Melbourne fine diner Lume. Picture: Jason Edwards

The South Melbourne restaurant at the centre of a toxic workplace saga was $1m in debt, owing tens of thousands of dollars to suppliers and staff.

Lume entered voluntary liquidation on June 26, first revealed by the Herald Sun, days after executive chef Diego Hubert Chabert resigned from the top job and more than 10 staff quit en masse.

The young chef said he’d left because the “dark” and “unethical” side of the company had become too much.

Documents obtained by the Australian Securities and Investments Commission (ASIC) show almost $3000 in tips was owed to staff, and $883,690 to the ATO. The restaurant’s debts total $1,082,921.

Several suppliers, including fishmongers, butchers, wine distributors and contractors were listed as creditors.

It came as Lume’s website promised a ‘culinary transformation was in progress’ and the restaurant was entering a new chapter.

After being offline since Tuesday, the new-look website said: “We momentarily pause our normal operations to craft a novel and innovative menu. Our culinary master will surprise your palate with exceptional flavours and beautifully presented dishes.”

“This brief pause is our voyage into new territories of fine dining. We appreciate your patience and ongoing support during this transformative phase.”

Chef slams ‘greedy’ owners

A former top chef of a high-end Melbourne restaurant accused of toxic behaviour says the company’s dodgy dealings had been going on for years.

John Rivera worked as Lume’s executive chef between 2018 and 2019, succeeding Shaun Quade and proceeding Elijah Holland, and said he wasn’t paid superannuation during his employment.

He was also regularly approached by suppliers asking why they hadn’t been paid.

“I left for a culmination of things, it was a snowball effect,” he said.

“Ethically I couldn’t stand for it. My conscience couldn’t do it. I had relationships with suppliers and they trusted what I did.”

“I felt like I let them down in the end, because the business had let them down.”

The Kariton Sorbetes founder also lost $10,000 from his severance package after being asked to cut short his six-month notice period after resigning in 2019.

John Rivera worked as Lume’s executive chef between 2018 and 2019.

“My resignation taught me how (the owners) saw people as disposable numbers,” he said.

“My notice period was six months … but they pulled me aside and said I could finish in the next month. When I said they legally had to pay my severance, they said ‘we’re not doing that’”.

Rivera said he was later told he could stay for six months, but would be demoted and receive less pay.

“All I can say for sure is that they are greedy. It was a mindset that he had.”

Rivera’s claims come as staff lifted the lid on the “toxic” culture of the high-end Melbourne restaurant.

Lume’s executive chef, kitchen team and front-of-house staff quit en masse and resigned from the posh South Melbourne fine diner just days before the business entered liquidation.

Young chef Diego Huerta Chabert revealed he’d stepped away from the top job because the “dark” and “unethical” side of the company had become too much.

The Herald Sun can reveal the experiences of restaurant staff and suppliers included:

• Staff snubbed on mandatory superannuation payments over three years;

• Staff told to “f--- off” when they asked management why they had not seen “thousands of dollars” worth of tips in at least six months; and

• Several suppliers and contractors’ invoices not being paid by the accounts team.

Huerta Chabert has spoken out on the company’s ‘dark’ and ‘unethical’ side. Picture: Jason Edwards

Staff said management emailed them last week saying the restaurant would close until further notice.

But within hours they had an email from liquidators confirming the business’s fate.

Huerta Chabert, who has worked in Michelin-star kitchens, said he had never seen such a toxic workplace culture.

“I have worked in some of the most prestigious restaurants in the world,” he said.

“I have never experienced such ­unethical and low behaviour.

“I feel like it’s my responsibility to stand for my team when the team isn’t getting support.”

Another senior worker, who wished to be anonymous, said the issues were widespread.

“Accounts with suppliers were not being looked after at all,” the worker said.

“We’d get tips (from customers), and they were going through a credit card to accounts and we’d never see them. Accounts with suppliers were put on hold. A lot of the team didn’t really understand what was going on.”

Another disgruntled worker said they were sick of this “horrible” behaviour.

“I’m super overwhelmed,” they said. “This has been going on for three years. I just want these people to pay for what they are doing.

“This is unethical, they shouldn’t be in business. It gives Australian (restaurants) a bad name; it’s a nightmare.”

Supplier Robert Perrone, who at the time worked for now defunct Premier Foods, said he’d lost about $10,000 while supplying dry goods to the restaurant from 2010 to 2019.

“They use and abuse you,” he said. “Your account team would contact their accounts team and wouldn’t receive a response.”

“Eventually we’d get into some payment plan, but they were always behind.”

Documents show liquidators were appointed on June 26. Huerta Chabert resigned on June 24. It is understood several other staff quit the same day.

Lume’s owners also run wholesale food supplier Quality Food World. In 2016, the company was fined $85,000 in the Federal Court for the underpayment of migrant and overseas workers.

The penalty followed an ­admission by Quality Food World that it underpaid 46 employees a total of $149,137.

Fair Work Australia said there were no active disputes with this employer.

Lume’s owners were invited to comment.