Employees of a Sydney restaurateur, who was the COO of the company they say failed to pay superannuation and tips, have smashed their former boss for his involvement in the reopening of an iconic Sydney gay club as it advertised for new staff.
Beloved Sydney venue ARQ nightclub fell victim to the Covid pandemic and has been shuttered since 2020. The 1230-square-metre Oxford St compound was also put up for sale for $50 million in September 2021.
After two attempts to sell the compound, it’s now fallen under the management of embattled Sydney restaurateur Mark Richerdson and his company Kings Experience PTY LTD, with a reopening set for early December 2022.
But recruiting efforts for the revamped venue have been met with upset from employees of Mr Richerdson’s last business venture, Barangaroo eatery Bel & Brio, who are still awaiting unpaid wages and other payments after the Italian dining group was unexpectedly shuttered last month.
Want to stream your news? Flash lets you stream 25+ news channels in 1 place. New to Flash? Try 1 month free. Offer available for a limited time only >
Staff left unpaid after unexpected closing
Mr Richerdson was listed as the chief operating officer for Bel & Brio when the multi-premise Barangaroo business was locked down by its landlord Lendlease in October due to an outstanding $1.8 million in unpaid rent.
In the days after, several of Bel & Brio’s employers spoke to news.com.au complaining of unpaid superannuation and tips, late wages, missed payments from suppliers and contractors and criticism at the lack of communication around the closure from Mr Richerdson and management.
With many of Bel & Brio’s staff relying on visa sponsorship in order to remain in Australia, the sudden closure of the workplace also threatened their future in the country.
Employees are also missing tens of thousands in superannuation payments.
In a previous comment to news.com.au, Mr Richerdson claimed management was “blindsided by the closure”, which occurred during a pay week.
Although he said that “everyone will get everything they are owed”, staff say they’ve yet to receive their last fortnight of pay in the three weeks since Bel & Brio closed.
He also said issues with suppliers and contractors have only become apparent “during and after Covid”, claims that Bel & Brio employees have contradicted.
“Every business, especially those within the hospitality industry, have had issues,” Mr Richerdson said.
“I have always fostered strong relationships with suppliers, I am so grateful for their flexibility, as if we didn’t have stock we couldn’t trade.”
When asked about missing super payments, Mr Richerdson said he had “been personally hit with a Superannuation Guarantee by the ATO”.
This means he’s failed to pay the minimum amount of super to eligible employees, which currently stands at 10.5 per cent of the gross salary.
“Currently we are implementing a monthly payment plan to ensure everyone gets everything they are owed,” he said.
“Directors are permanently liable for super payments so I am personally liable and I will pay it.”
Although he blamed the “super payment issues as a result of the COVID-19 lockdowns”, his employees claim this has been a long-running issue.
In documents seen by news.com.au, the super balance of one employee who had been with the company sat at a mere $1766.86. He estimates it should have been closer to $35,000.
Former staff’s ‘rage’ over new venture
Amid ongoing pay disputes between Mr Richerdson and Bel & Brio employees, former staff have lashed a Facebook post looking for bar staff at ARQ.
Shared on Wednesday night, a post made by a Kings Experience employee said the revamped venue was looking for “full-time experienced and energetic bar staff so we can reignite Sydney’s night life with a bang”.
The post was eventually deleted after it was flooded with negative comments from former Bel & Brio staff warning potential applicants to be wary.
Peter*, who left Bel & Brio in 2021 said seeing the job ad shared on Facebook and jobs site Indeed left him in a “deep state of rage and disillusionment”. He said he found out about Mr Richerdson’s involvement in ARQ after hearing him “brag about his business skills” while working with him.
“It’s not fair for someone to work there if they aren’t aware of the situation. You want to try and save them,” he told news.com.au.
“I loved my job, but in that environment it felt like I was begging for my salary to be sent on time. It ruins your mood and the mental health consequences weren’t great.
“It’s just very upsetting that he’s trying to set up a different venue. This guy thinks he’s invincible and that’s the thing that’s really bothering me at this stage.”
Another employee, who spoke to news.com.au on the condition of anonymity, said he was glad Sydney’s tight-knit hospitality community had been warned about the claims put against Mr Richerdson.
“He still owes us a lot of money... It’s pretty bad,” he said.
“For the good of employers, we (former employees) really don’t want him to hire anyone. He shouldn’t be able to do business.”
Bel & Brio boss’s link to ARQ revealed
ARQ nightclub and Sydney’s formerly longest-running gay sauna Bodyline will now be managed by a company called Kings Experience PTY LTD.
Incorporated on November 29, 2021, Mr Richerdson is listed as one of its directors.
News.com.au also understands that Mr Richerdson spent about $4 million on the deal, which includes a renovation of the venue.
This publication has approached Mr Richerdson and Kings Experience for comment, however they did not respond at the time of publishing.
Documents seen by news.com.au also link the nightclub’s sole owner, Shadd Daniel Danesi to the venture.
A company called Blackberry Group PTY LTD was registered on July 1, 2022 listing Mr Danesi and Mr Richerdson as directors.
On August 18, 2022, changes to the register of members showed 100 shares transferred from Mark Richerdson & Co PTY LTD to Kings Experience & Co Pty Ltd.
Legal representatives acting on behalf of Mr Danesi told news.com.au that Mr Danesi and Kehoe Pty Ltd (the proprietor of ARQ Sydney) “are not and have never been, in any way, affiliated with Bel & Brio”.
Embattled staff speak out
After the closure of Bel & Brio on October 29, many of the group’s 140 staff have been vocal about claims of financial mismanagement of the business. One staffer who finished his shift on the Friday before the restaurant’s closure said staff were notified of the incident due to a sign left by Lendlease that read: “To whom it may concern: Please note that the Landlord is in control of the Premises.”
“We didn’t get any texts or emails saying that the restaurant had closed. We found out from someone who was working,” senior employee Nicholas* told news.com.au.
“Instead management sent communication that the restaurant was closed for the weekend and ‘let’s see what is going to be the roster next week, have a great weekend and take two days off’.”
Staff have also yet to receive their last fortnight of pay, with numerous staff claiming that tips – which were collected and divided between workers – have been withheld for at least the past four months.
Mr Richerdson, however, claims all tips from the venues have been paid. Instead he says that only service charges, which have been used as an entitlement when the business was performing well, have ceased.
“This was always a privilege, not a payment staff are entitled to,” he said.
Another former staffer Christopher* said that he only became aware he wasn’t receiving compulsory super payments during the 2020 Covid pandemic, when workers were given the option to access their superannuation early in cases of financial adversity.
“It said he was paying it on the pay slip but no one noticed until Covid came. Then the rule came out that you could take up to $10,000 of superannuation so everyone tried and everyone found out there was nothing in there,” says Christopher.
When these claims were put to Mr Richerdson, he said he was “personally and permanently liable” for the amount owed and said he would be implementing a “monthly payment plan to ensure everyone gets everything they are owed”.
More Coverage
As of yet, employees say they have yet to receive these funds.
*Names have been changed
Know more? Get in touch at Jessica.wang@news.com.au
Read related topics:SydneyncG1vNJzZmivp6x7r7HWrGWcp51jrrZ7xaKlmqaTmny4u9GkZpqsXay8s7eOmqmqZaOusa%2Bx2Galop%2BYqbCtwcFmpJqmkZyyrrHNrWSrnaaarq2xw2arqGWSmnqmucGaq62klZl6o7HLZpmroZ9ir7C%2F0makmqqbYr%2Bqr8eeqZ2rn6N8r7HWrGSsrJ%2BnxnCxxWxncJtnaH96r5BubGmclWuworLFcJmcamZusXaDxQ%3D%3D