A creditors'report obtained byThe Age andSydney Morning Herald highlights the consistent underpayment of workers from when Dinner by Heston opened at Crown in 2015 and the significant role of the casino in the initial engagement of those staff.
The creditors'report suggests Crown was in effect in a joint venture with the company that owned the restaurant,Tipsy Cake. A Crown employee had set up the"blueprint"for how the majority of staff were initially engaged,the report said. Crown was not,though,involved in the ongoing payment of workers. The blueprint was"applied over several years and resulted in the underpayment of employee wages",the report said.
Crown also provided the business – one of its marquee tenants – with significant backing including interest-free loans. The daily takings of the restaurant were deposited into a Crown bank account and Crown charged Dinner by Heston rent of just $1 a year.
Crown also paid a multimillion-dollar licensing fee to Bacon and Egg Ice Cream Limited,a company related to Tipsy Cake. Tipsy Cake is based in the tax haven of Nevis and information about its ownership is hidden.
A Crown spokeswoman said in a statement that Tipsy Cake"was a tenant of Crown",which was"responsible for its own operations and employed its own staff".
"Tipsy Cake has asked the court to appoint a liquidator,on the basis that it is insolvent. In these circumstances,Crown has taken steps to bring the tenancy to an end. As the winding-up application is now before the court,Crown will not be making any further comment concerning the liquidator’s appointment,"the spokeswoman said.
On Friday Crown said it would “provide assistance to Tipsy Cake employees looking for employment within Crown”.