Billionaire Justin Hemmes emailed 5,000 of his employees Tuesday afternoon to say he is “devastated” over the allegations about conduct at the Ivy, part of his hospitality empire.
The exclusive nightclub frequented by high rollers is facing allegations of sexual abuse, harassment and grooming, along with copious drug use, enabled by CCTV ‘blind spots’.
In the email to staff, first reported by The Sydney Morning HeraldMr Hemmes wrote that he was “devastated to read the allegations against Merivale about our staff and culture.”
“Rest assured that we take this matter very seriously and do not condone, encourage or tolerate the alleged behavior.
“We will continue to work to address every allegation made in today’s article.”
Level 6, located in Sydney’s CBD as part of the Ivy cluster of venues owned by Mr Hemmes’ Merivale group, was “a step away from a brothel”, an unnamed manager told Nine -newspapers.
Staff at the upscale venue, where membership costs $10,000 a year, have detailed allegations of sexual assault and pressure to please the largely wealthy male clientele.
In return, the handpicked crowd of glamorous young women, mostly between the ages of 18 and 21, who worked as “hosts” would take home Gucci handbags and up to $600 in tips for a few nights of work.
Billionaire Justin Hemmes (pictured right) emailed 5,000 of his employees on Tuesday afternoon to say he was “devastated” by allegations about behavior at the Ivy, part of his hospitality empire
The club’s raunchy tone is set by the decor and furnishings, which include a photo of a half-naked woman with the word “Dreamlover” tattooed on her chest, as well as a stripper pole.
Poker chips are decorated with a woman in red lingerie bending over.
An unnamed staff member told Nine newspapers that employees were “expressly told” that they could not refuse a guest who wanted to offer them a drink.
Another said that if senior Merivale staff were drunk and/or high in the venue, staff were “put under pressure” to drink with them, and it was “very difficult” to say no.
One host claimed a senior employee threw her on the couch, reached up her skirt and grabbed her underwear.
She claimed another asked her, “Why haven’t we ever fucked?”
‘I was disgusted. I couldn’t believe it. This is my workplace and this is happening. You certainly didn’t feel like you could do anything about it,” the host said.
In a separate incident, another senior staff member is said to have forced herself against the host so hard that it hurt her.
It is also alleged that a senior employee took two women home and locked them in their home, pressuring them to take cocaine and trying to drag one into a bedroom.
When the couple tried to leave, he reportedly ran in front of their car, with the women ultimately only escaping when he passed out.
It was also claimed that a VIP guest pushed a staff member into the bathroom to do cocaine and ripped open her top.
When she raised the incident with management, she was told, “Don’t beat yourself up about it. It’s done, now move on.’
Merivale operates more than 70 hospitality venues in New South Wales and Victoria.
“Most deeply in my thoughts, my concern is for all of you, and especially for the suffering caused by the vilification that has been cast on those who work and have worked in the past, at Merivale and within the hospitality industry in general,” said Hemmes. in his email to staff.
“I am deeply saddened that today’s article broadly denigrates everything we do.”
More to come…