Merivale’s position on government council in peril after staff claims

Six Merivale and Swillhouse whistleblowers are calling for a public inquiry into the treatment of women and misconduct in the hospitality sector as Merivale faces being blocked from rejoining a NSW government council.

The push follows the Sex, Sleaze and Hospitality investigation by The Sydney Morning Herald, Good Food and The Age, which revealed claims of sexual assault and harassment, widespread drug use and employees being marginalised for reporting misconduct at two of Sydney’s largest hospitality groups.

Merivale chief executive Justin Hemmes and Swillhouse managing director Anton Forte.

Merivale owns more than 70 venues with an estimated worth of more than $3 billion, including the Ivy, Bar Totti’s and Mr Wong. The ABC has also reported on alleged misconduct at its venues, including the Coogee Pavilion and Hemmesphere.

Swillhouse runs six of Sydney’s most high-profile venues including Le Foote, the Caterpillar Club and Restaurant Hubert. Between them, the two groups have dominated Sydney’s hospitality scene, winning international awards and more than a dozen chef hats in the Good Food Guide.

But staff and guests say both companies have driven a culture that marginalised women and put them at risk.

Former Swillhouse employees Rachelle Hair, Jenna Hemsworth, Claire Jones, Reuby Kahl and Brittany Rowe said they “absolutely supported” a public inquiry into the industry that could force Swillhouse managing director Anton Forte and Merivale chief executive Justin Hemmes to appear before state parliament.

Former Swillhouse employees Claire Jones, Brittany Rowe and Reuby Kahl. Credit: The Sydney Morning Herald

“I want long-lasting accountability and change,” said Rowe. “Making an example of them will force other business owners to reflect internally.”

Forte has apologised to anyone who felt unsupported at Swillhouse and said the company had worked hard “to promote a diverse, inclusive and safe workplace”.

Hemmes told staff last week he was devastated to learn of the claims against Merivale. The company said it had no record of the allegations and it was committed to “an inclusive, diverse and respectful workplace environment for our staff, as well as for our customers”.

Merivale’s Ivy precinct is at the centre of allegations raised by this masthead, including the private members club Level 6.

Four former employees claimed it created a toxic environment that exploited women, encouraged them to have sex with customers, perpetuated sexual harassment and facilitated drug use.

Jess Helinski, a Merivale customer who claims she was presented as a sex worker to VIPs after being rushed through the Ivy line by a Merivale host this year, welcomed Merivale’s appointment of Kate Eastman, SC, to lead an internal investigation, but said a public inquiry was essential.

“This kind of investigation is rarely enough, especially when individuals have significant influence and the ability to withhold or shape findings,” she said.

Merivale has assured staff that Eastman’s investigation will remain confidential and independent.

Former Swillhouse bartenders Jenna Hemsworth (inset) and Rachelle Hair.Credit: Christopher Pearce

Merivale and Swillhouse representatives have both stepped down from the board of the industry’s top lobby group, the Australian Restaurant and Cafe Association.

SafeWork NSW is also investigating both companies.

But Merivale is still listed publicly on the NSW government’s 24-hour-economy advisory panel.

A spokesperson for the Office of the 24-Hour Economy Commissioner said the group ended its term in March 2024 and no appointments had yet been made to the new 24-Hour Economy Advisory Council.

“Any appointments to the new 24-Hour Economy Advisory Council would be subject to a selection process in line with NSW government appointment requirements,” the spokesperson said.

Greens MP Jenny Leong said the council needed to ensure a nightlife culture free from sexual harassment – not just a 24-hour economy that puts profits over the safety and health of the community.

“Having more ‘dude bros’ around the decision-making table won’t solve the raft of stories we have heard about toxic hospo venues in our city,” she said. “There should be no place for bigwigs from businesses like Merivale, Swillhouse or any hospitality group with accusations against them on the next advisory board if the government is serious about safety.”

Swillhouse adviser Justine Baker.

Swillhouse strategic adviser Justine Baker welcomed more transparency in the hospitality sector.

“The more the conversation is out in the open, I think it’s great, but I think there’s a part where we’ve got to get moving on to solutions,” Baker said last week.

Baker said hospitality businesses encountered “very little governance” as they grew, which could lead to problems when success hit. “[Human resources] teams are very few – until you get to a certain size,” she said.

Christina Hey-Nguyen, SafeWork NSW’s director of the Respect at Work Task Force, told an industry conference last week that one in two hospitality workers said they had experienced sexual harassment.

“[One] business said to us, ‘it’s part and parcel of working in a busy, sexy little bar, you’ve got to expect it in that context, [and] if you can’t handle it, it’s not the right line of work for you’,” she said.

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