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.

Loading

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.

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.

Loading

“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 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.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.