Merivale Hospitality Group Is Facing Further Allegations of Misconduct Following the Acquisition of $55 Million Melbourne CBD Precinct
Reports of exploitation and underpayment of migrants have prompted Melbourne Lord Mayor Nick Reece to defend the group's expansion into Victoria.
Please note: This article contains descriptions of exploitation and sexual misconduct.
Hospitality behemoth Merivale has again found itself embroiled in allegations of exploitation this week — just nine months after a bombshell exposé by ABC uncovered a culture of sexual assault, misogyny and underpayment across the group's portfolio of venues
Six months after the report's release, Merivale received approval to proceed with its most ambitious venture yet — the purchase and redevelopment of City of Melbourne's Parkade site. The sale marked the official expansion of the group into metropolitan Melbourne, increasing the hospitality portfolio from one regional venue (Lorne Hotel) to an eight-level, multi-venue precinct on Little Collins Street.
Lorne Hotel — Hugh Davidson
On Monday, June 30, The Age confirmed a Fair Work investigation into Merivale Hospitality Group, with claims the group exploited vulnerable workers. In The Age's article, Mexican migrant chefs are quoted describing "nightmare" conditions that followed their recruitment to Merivale venues — including 15-hour shifts without breaks and cramped living conditions with other workers. The investigation was launched just months after the group agreed to settle a $19.5 million wage theft class action suit, alleging widespread staff underpayment.
In February, when the brokerage of the Parkade sale was underway, Lord Mayor Nick Reece described Merviale billionaire owner Justin Hemmes' investment as "a great thing for the city."
Justin Hemmes — supplied
"Justin has served his apprenticeship in Sydney, where he has been very successful," he said. "He's now ready for the big time and taking on Australia's cultural and hospitality capital, Melbourne."
When asked to defend his earlier statements in light of The Age's Monday exposé, Reece commented, "The allegations against Merivale should be properly investigated and responded to."
However, The Age reports that "council insiders have questioned whether the council should have embraced Merivale with such open arms in the first place", with one insider describing the sale of the Parkade to Hemms as letting "the wolf into the den."
Mimi's — supplied
The Parkade — purchased for a cool $55 million — will house a Melbourne CBD version of the group's Mimi's and Totti's restaurants, a boutique hotel, a day spa, a gym, a 'Sky Garden' and more.
You can find out about the most recent allegations levelled at Merivale Hospitality Group via The Age and read our coverage of the Level 6 exposé from October 2024.
Header image: Merivale Group (supplied).
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