A New Bombshell Report Has Alleged Widespread Misconduct and ...

Please note: This article contains descriptions of sexual misconduct.

A shocking ABC investigation, published on September 4, revealed a culture of sexual exploitation, misogyny and failures of management at venues operated by hospitality heavyweight Merivale. Now, The Sydney Morning Herald, The Age and Good Food have uncovered yet more troubling revelations about the hospo giant.

A bombshell exposé, published on October 29, alleges that staff working at Merivale's exclusive members-only club, Level 6, located at the business' sprawling Ivy precinct in the CBD, were expected to "accommodate [the] advances" of wealthy patrons. In return, staff — who were often aged between 18 and 21 — could expect gifts of luxury goods such as designer handbags and hundreds of dollars in tips. "It was like a strip club with no one taking off their clothes," one former Level 6 staff member told The SMH, with another describing the venue as "One step away from being a brothel".

Former staff alleged that this sexual quid pro quo intensified in 2013 when a pole-dancing pole was installed at Level 6. Around the same time, according to The SMH report, drug use by patrons became increasingly normalised and tolerated.

Journalists Eryk Bagshaw and Bianca Hrovat claim they spoke to dozens of former Merivale employees during their investigation, but the vast majority of them only agreed to do so anonymously as they feared repercussions from the hugely influential hospitality employer.

"They hire people very, very young. There are thousands of 18- to 21-year-old girls out there who are young, naive and sucked in by Merivale," one former manager told The SMH. "[They are] ushered into the cult and then … bad things start happening, and they feel like they can't say anything."

The report alleges that on occasions when police attended Ivy, a "blue lights" warning would be shared to a staff WhatsApp group or via internal radio comms. A Merivale statement asserted that alerting staff to the presence of police was "standard industry practice", adding: "Every team member and especially our managers have duties under the law to assist police. They cannot do so if they are unaware of their presence on site."

One former host from Level 6 anonymously shared their experience of sexual assault in the workplace, saying a male patron "would grab you and throw you on the couch and put his hand up your skirt… He went underneath my clothes and grabbed my underwear."

The same host said of her experiences working for Merivale, "I was disgusted. I couldn't believe it. This is my place of work and this is happening. You certainly didn't feel like you could do anything about it."

The extensive reporting also detailed unsafe and abusive activities — including sexual misconduct and drug use — at several other Merivale venues, including cocktail bar Hemmesphere, Level 5 (the event space directly beneath Level 6 at Ivy), Felix and the Bondi outpost of Totti's.

However, the report conceded that some former Merivale employees and guests who were interviewed for the article believed their access to drugs, exclusive venues and wealthy patrons were unofficial perks.

While Merivale denies the allegations in the report, the company has engaged leading human rights and discrimination lawyer Kate Eastman, SC, to lead an investigation. A statement from Merivale added that if any of the allegations are found to be true, the company "regrets any distress caused."

This latest reporting on Merivale echoes the seismic allegations The Sydney Morning Herald and Good Food published about Swillhouse Group, published on August 21. Anton Forte, the founder of Swillhouse Group, stepped down as the company's CEO on Friday, October 25, following months of attempted rehab, including hiring Justine Baker, a hospitality veteran and former CEO of Solotel, as well as two independent consultants, to oversee cultural reforms across the company.

If you need to speak to someone about an experience you have had or are seeking information, please contact 1800Respect on 1800 737 732 or visit 1800respect.org.au.