Several staff members have been dismissed from Linchpin Hospitality, the operator of embattled pub baron Jon Adgemis’ remaining venues, amid cash flow issues and delayed payroll payments – once again drawing public scrutiny to celebrity chef George Calombaris.
Linchpin assumed control of venues previously operated by the failed Public Hospitality Group (PHG), including The Empire Hotel in Annandale, The Lady Hampshire in Camperdown, and Noah’s Backpackers in Bondi, following Adgemis’ financial collapse last year, which left debts estimated at $500 million.
According to The Daily Telegraph, the group has now encountered its own financial hurdles. On Wednesday, July 2, four full-time marketing staff were let go.
According to sources, Linchpin CEO Terry Soukoulis informed the employees that Deutsche Bank, a key backer of the venture, had withdrawn its financial support.
In a June 17 email to staff, Soukoulis wrote: “Unfortunately there has been a delay in receiving funds from our overseas lending partners, which has impacted on the timing of the payroll run. I fully appreciate the stress and uncertainty this can cause and want to acknowledge the weight of that.”
A spokesperson said the staff layoffs were part of a realignment due to revenue issues, and that support is being provided to affected staff. Venues will remain open.
The situation has reignited scrutiny of Linchpin’s culinary director Calombaris, who previously faced backlash when his former restaurant group Made was fined $200,000 and ordered to backpay $7.83 million to more than 500 underpaid staff in 2019.
Calombaris clarified he is a contractor for Linchpin and is currently focused on his independent pop-up venture, Gazi, in Sydney.
Source: The Daily Telegraph
