Shady Pines Saloon fights eviction over alleged lease breaches

A popular Sydney bar and its landlord are embroiled in a legal battle over efforts to evict the venue, in part due to grave allegations of sexual misconduct among its staff.

It is all guns blazing in a legal battle between a Sydney saloon bar and its landlord over efforts to evict the business due to grave sexual misconduct allegations against staff across the bar’s parent company.

Shady Pines Saloon took their landlords at Trenerry Property to the NSW Supreme Court in efforts to halt their eviction after 16 years at their Crown St, Surry Hills location over multiple alleged breaches.

The landlord has now hit back, claiming the bar breached its obligations to prohibit “immoral, offensive or illegal acts” on the premises following shocking sexual misconduct claims against staff within parent business Swillhouse.

The hospitality group, which owns Shady Pines Saloon, Restaurant Hubert and The Baxter Inn, is currently under investigation by SafeWork NSW after multiple female employees alleged sexual assault and harassment by Swillhouse colleagues.

Among them were Rachelle Hair – Shady Pines’ first female bartender – and 2018 Australian bartender of the year Jenna Hemsworth.

Shady Pines Saloon on Crown St in Darlinghurst, Sydney.

“Based on the recent allegations of misconduct and unsafe work practices at various Swillhouse venues – including Shady Pines – and subsequent public statements that have been made on behalf of Swillhouse about these allegations, it appears Swillhouse has been aware of these issues for some time, and has failed to adequately remediate them,” a spokeswoman said in a statement.

“Other failures which were raised by the landlord concerned the tenant’s obligation to serve a substantial meal alongside the service of alcohol under its liquor licence.

“Despite numerous unsuccessful attempts by the landlord to both assist and seek rectification of these breaches, the tenant has refused to acknowledge or address these matters in a satisfactory manner.”

Shady Pines Saloon on Crown St in Darlinghurst, Sydney.

On October 1, the landlord notified Shady Pines Saloon it intended to terminate their lease.

Two days later, the bar launched NSW Supreme Court action to halt the eviction, with the landlord agreeing not to proceed until Swillhouse’s claims are determined.

“Unrelated to these matters, Trenerry Property Group, acting on behalf of the landlord, stands behind those who have been affected by the alleged misconduct at the Shady Pines Saloon, and any other venues owned and operated by Swillhouse,” the statement continued.

The current Shady Pines Saloon site, which is slated to hold the Soho House on upper levels.

In a statement to The Daily Telegraph, Shady Pines Saloon insisted it had always complied with lease conditions and licensing obligations.

It also accused their landlord of prioritising their interests in the impending development of a Sydney arm of exclusive members-only social club Soho House.

“We do not accept the landlord’s characterisation of the business and as such, are contesting the proposed lease termination in the courts,” the statement read.

“The venue does have food available, as per the terms of its licence, and has never defaulted on its lease terms.

“We believe this is an improper and opportunistic attempt by the landlord to evict a reliable tenant of 16 years to pursue the multimillion-dollar development of a private members club.”

Concept images of the new Soho House development.

Trenerry Property rubbished the accusation.

“The development approval granted by the City of Sydney allows for the construction of the new development to occur while the Shady Pines Saloon continues to trade for the remaining term of their lease,” the Trenerry Property statement said.

“This is further underpinned by Trenerry Property Group’s recent consent for Shady Pines Saloon to apply for permission to extend its trading hours in August 2024, prior to the breach notices being issued.”

In the Supreme Court on October 3, the court ordered Shady Pines Saloon to file evidence by October 25, with the landlord to file by November 15.

A hearing date was set to be allocated in the same court on Friday.

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Originally published as Shady Pines Saloon fights eviction over alleged lease breaches