Former Senate power broker’s restaurant dispute turns nasty
Powerbroker and Labor lobbyist Graham Richardson’s dispute with long-time associate Danny Meares continues to turn sour.
Richardson took action against fellow Townsville restaurateur Meares as they wind up the business, which the pair bought in 2014.
“Not much to tell. Just winding up my restaurant business,” Richardson told Margin Call.
The dispute is over the ill-fated joint venture to purchase and operate the Watermark Bar and Grill.
As it turns out, Richardson only held a minority share – never more than 10%.
Richardson has claimed Meares removed Richardson as a company director, deprived him of agreed profits, loaned money without consent, and secretly sold the business from under his nose.
The pair struck up a relationship in 2013 after Richardson and his wife frequented Meares’ renowned restaurant in La Perouse, Danny’s Seafood, as well as a satellite operation located on Bondi Beach.
At the time Meares says he was flirting with selling the business or opening a new business that would be handed to his sons.
Richardson suggested to Meares that he do due diligence on the Watermark in Townsville. Having liked the venue, he then purchased it from owner, Peter Collings.
Richardson funded 10 per cent of the $3.6 million purchase price.
Meares alleges Richardson was meant to be a silent partner, which is at the core of the dispute and has turned nasty with the sale of the Waterrmark.
Richardson believes his investment entitled him to a say in the “marketing and sale of the Watermark business”.
The Watermark was sold in May to Melbourne-based Kickon Group for $2.5 million.
Meares says he was meant to have “full decision-making control” of the restaurant. For this reason, Richardson was removed as a director within months of the Watermark opening its doors.
According to Meares details of this arrangement were confirmed in 2014.
However, it doesn’t end there.
Richardson is also claiming he was denied 10 per cent of the profits, and that Meares engaged in “misleading or deceptive” conduct when instead of using the proceeds of the sale of the seafood restaurant to fund the Townsville venture, he used a bank loan.
Meares claims Richardson was fully informed of the bank loan and assisted with the finance application.
Irit Jackson, 16th June 2022
