Merivale (company) explained

Merivale
Type:Privately held company
Founders:John & Merivale Hemmes
Location City:Sydney
Location Country:Australia
Key People:Justin Hemmes (CEO)
Num Employees:~2,500 (2015)

Merivale is an Australian privately held company, with property assets involved in the entertainment and hospitality sectors, predominantly in Sydney, New South Wales.

Fashion years

It was founded in 1957 in Sydney by John and Merivale Hemmes, initially as a millinery in Sydney's Boulevard Arcade, later expanding into clothing. In 1959, the first House of Merivale fashion store was established in the Theatre Royal in Castlereagh Street. It expanded into a successful and influential high-fashion chain with three stores in Pitt Street, two in Melbourne and one in Canberra.[1]

Hospitality and property diversification

Merivale diversified into both hospitality and property interests, acquiring the Angel Hotel building in Pitt Street, which included a restaurant that reopened as a boutique, and was the first item in a substantial property portfolio.[2]

It expanded further into hospitality in the early 1990s with the Merivale restaurant in Potts Point, as it began winding down its fashion interests, closing the last fashion outlet in 1996.[2] [3]

Hemmes' son, Justin, took over the business in the mid-1990s and aggressively diversified into hospitality, operating more than 70 nightclubs, pubs and restaurants, primarily in Sydney, by 2020.[4] [2] [5] [6] Notable assets include Hotel CBD,[7] the Newport Arms Hotel[8] and the Slip Inn.[9] In 2021, Merivale purchased the Lorne Hotel for 38 million, expanding the company's reach into Victoria.[10] [11]

In 2019 a class action was commenced against Merivale, alleging 129 million in under-payment of approximately 14,000 employees who were employed between December 2013 and December 2019. The litigants claimed that the employees were not paid for the significant overtime they were required to work, beyond the maximum allowance of 38 hours per week.[12] [13] Merivale denied the claims.[14] [15] [16] [17] On 30 March 2021, in a major loss to Merivale, Justice Thawley in the Federal Court ruled that the WorkChoices agreement was not validly approved.[18] On 6 March 2024, Merivale, agreed to a 18 million settlement without admitting wrongdoing. The settlement, allocates about half of the funds to cover legal costs and the litigation funder's commission, with approximately 9.4 million earmarked for the affected workers.[19]

Notes and References

  1. News: Husband, Wife Fashion Team . . 5 December 1975 . 15 . .
  2. https://www.smh.com.au/national/john-hemmes-obituary-merivale-group-founder-and-hospitality-legend-with-sharp-eye-for-fashion-and-restaurants-20150306-13wueo.html John Hemmes obituary: Merivale Group founder and hospitality legend with sharp eye for fashion and restaurants
  3. https://www.hospitalitymagazine.com.au/the-merivale-effect-an-insight-into-sydneys-hospitality-empire/ The Merivale effect: an insight into Sydney’s hospitality empire
  4. Web site: Molloy, Shannon . From notorious Sydney playboy to billion-dollar businessman: Justin Hemmes' life of luxe . The Chronicle . . 14 March 2020 . 21 November 2020 .
  5. https://merivale.com/ourstory Our Story
  6. https://www.goodfood.com.au/eat-out/news/sydney-hospitality-heavyweight-justin-hemmes-calm-at-centre-of-merivale-expansion-20151005-gjw2tl Sydney hospitality heavyweight Justin Hemmes calm at centre of Merivale expansion
  7. https://merivale.com/venues/hotelcbd/ Hotel CBD
  8. News: How Justin Hemmes snapped up the Newport Arms Hotel in dramatic late night $50m deal . . 18 March 2015 .
  9. https://merivale.com/venues/slipinn/ Slip Inn
  10. News: Cummins . Carolyn . Johanson . Simon . Sydney pub baron Justin Hemmes in spending spree, snapping up Leichhardt, Lorne deals . en . The Age . 2021-05-19 . 2023-04-09.
  11. News: Waters. Cara . 'It just felt special': Billionaire peers buy up Lorne's pubs . en . The Age . 2023-04-09 . 2023-04-09.
  12. News: Morton . Rick . Inside Hemmes' $100m wage case . 1 November 2022 . Saturday Paper . 20 June 2020.
  13. News: Carey . Alexis . Sydney pub baron Justin Hemmes faces $129 million class action bill within weeks . news.com.au . 10 February 2022 . 28 January 2023.
  14. News: Marin-Guzman, David . Justin Hemmes hit with $129m class action over underpayments . . 27 December 2019 . 21 November 2020 . subscription .
  15. News: Patty, Anna . Justin Hemmes' Merivale group says employees unlikely to benefit from class action . . 27 December 2019 . 21 November 2020 .
  16. News: Merivale accused of $126 million wage theft . Hospitality Magazine . 10 March 2020 . 21 November 2020 .
  17. Web site: Notice to Group Members . Raymond Boulos v MRVL Investments Pty Ltd: NSD 2168/2019 . . 14 October 2020 . 21 November 2020 .
  18. News: Marin-Guzman, David . Hemmes' Merivale loses key fight against $100m-plus back pay bill . . 31 March 2021 . 14 August 2023 . subscription .
  19. Web site: 2024-03-06 . Hemmes’ Merivale to pay out $18m in underpayment class action . 2024-03-26 . Australian Financial Review . en.

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