Merivale gives up its ACRA board position amid sexual harassment allegations
Merivale will no longer be represented on the Australian Restaurant and Cafe Association board.
The company recused itself after it was accused of sexual harassment, exploitation and drug sat its high-profile Sydney venues.
A Sydney Morning Herald investigation brought forth allegations that the company exploited women, encouraged sexual interactions with customers, enabled sexual harassment, and tolerated frequent drug use. Following these claims, Merivale's representative and Chief People Officer, Jessica Furolo, stepped down from the board of the Australian Restaurant and Cafe Association (ACRA).
Furolo was a founding member of ACRA, joining industry leaders Neil Perry, Chris Lucas, and Shane Delia in establishing the group, which represents prominent hospitality businesses, including hotel giant Accor.
Founded in May, the association’s mission has been to advocate for legislative and policy changes to support the hospitality industry.
Furolo’s departure marks ACRA’s second significant leadership loss tied to allegations of workplace misconduct. In August, former Swillhouse CEO Anton Forte resigned after a Sydney Morning Herald and Good Food investigation reported claims of sexual assault, drug use, and discrimination across Swillhouse’s six venues, including Restaurant Hubert and the Baxter Inn.
Chief executive Justin Hemmes said he is “devastated” by the allegations. In a note to staff on Tuesday assured them the allegation were being taken seriously.
“I am devastated to read the allegations against Merivale concerning our staff and our culture and sincerely apologise for any distress and concern that you may be feeling,” he said.
“Please be assured that we are taking this matter very seriously and do not condone, encourage or tolerate any of the behaviours which have been alleged. We will continue to work to address every allegation made within today’s article.”
Merivale runs more than 70 venues across NSW and Victoria, including the Ivy, Totti’s, Establishment and Mr Wong’s.
“Utmost in my mind is my concern for all of you, and especially for the distress caused by the aspersions that have been cast on those who work and have worked in the past, at Merivale and within the hospitality industry in general,” Hemmes said.
“I am overwhelmingly sad that today’s article broadly denigrates everything that we do.”
While taking the allegation seriously, the hospitality giant is “continuing to work to have some of the inaccuracies and falsehoods corrected”.
According to ARCA chief executive Wes Lambert Furolo will step down pending the determination of the investigation.
“ARCA in no way condones unsafe workplaces, sexual harassment or discrimination and it has no place in the hospitality industry,” Lambert said.
Merivale has appointed prominent Australian human rights and discrimination lawyer Kate Eastman, SC, to lead an investigation into the allegations reported by the SMH.
Hemmes assured staff that "there are NO repercussions for speaking up; in fact, it is absolutely encouraged”.
"We are living in a changing world, which in many important ways is for the better," he added.
Jonathan Jackson, 30th October 2024
