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Home / Business / Personal Finance / Investment

Leo Molloy at odds with Good Spirits Hospitality over new Auckland Viaduct HeadQuarters’ licence

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
24 Jan, 2023 03:13 AM6 mins to read

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Leo Molloy is facing an objection to a liquor licence for his new Auckland Viaduct bar. Photo / Fiona Goodall

Leo Molloy is facing an objection to a liquor licence for his new Auckland Viaduct bar. Photo / Fiona Goodall

Businessman and ex-Auckland mayoral candidate Leo Molloy wants to open a new HeadQuarters in the Viaduct tomorrow but says an NZX-listed company is trying to stop him.

Molloy wants to open in the old O’Hagan’s Irish Pub on Customs Street West in the Viaduct and said Auckland Anniversary Weekend and the buskers’ festival meant the timing of the opening was important.

But Geoff Tuttle, chief executive of the listed Good Spirits Hospitality, said matters had been settled “subject to documentation” and his company wasn’t the only party opposing the liquor licence.

Molloy said matters were “far from settled” because Good Spirits hadn’t agreed to his terms and that company was holding up his plans, which could cost him dearly.

“Good Spirits Hospitality is the only objector to our liquor licence. There are no other objections now. We’ve tried to have Good Spirits’ objection struck out, but they’re buying time with the district licensing authority. This is costing us hugely: 40 staff employed, $50,000/week in wages, weekly turnover this week projected to be $400,000,” Molloy said.

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In response, Tuttle said: “Good Spirits Hospitality did lodge an objection to EMYM Ltd’s variation application to Little HQ’s existing liquor licence to extend to the New HeadQuarters venue raising certain concerns.”

But Tuttle said several other parties including Auckland Police and Viaduct Harbour Holdings had lodged objections, although Molloy said those were subsequently withdrawn.

A hearing is yet to be held to determine the outcome of Molloy’s licence application, now before the Auckland Council District Licensing Agency.

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Tuttle today acknowledged disputes between Good Spirits and Molloy’s business, some of which centred around the ex-O’Hagan’s where Good Spirits previously operated.

That venue is where Molloy wants to open the new HeadQuarters on Customs Street West.

The location of Leo Molloy's new HeadQuarters in what was O'Hagan's. Photo / file
The location of Leo Molloy's new HeadQuarters in what was O'Hagan's. Photo / file

The listed company wanted rent relief during the pandemic and that was one issue, Tuttle said.

“Good Spirits Hospitality and LJMP - the owner of the building at 101-103 Customs Street West - has been in dispute over Good Spirits’ claim against LJMP for Covid-related rent abatement,” Tuttle said.

A dispute also arose about the condition of the ex-O’Hagan’s premises which Good Spirits had leased, Tuttle acknowledged.

This was over “making good” the premises when Good Spirits vacated the building when its O’Hagan’s closed.

“Good Spirits has always denied the validity of LJMP’s make-good claims,” Tuttle emphasised.

However, today Tuttle said matters were being settled, saying: “Subject to documentation, all parties have settled the above matters.”

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But this morning Molloy rejected that.

“There was a deal but they’ve added multiple new terms,” he said. “In short, they didn’t accept our terms so there is no deal.”

Molloy said Good Spirits’ had lodged a threefold licence objection: “Noise control, crowd management and a theory about us blocking off a pedestrian easement into the Viaduct. We have never blocked that off but put up pool fences to keep people in the demarcation lines.”

His business never had a problem with the first two grounds of objection, he said.

Good Spirits’ objection to HeadQuarters’ licence application says: “GSH owns and operates premises known as Danny Doolan’s and The Fox. These premises are located at Quay Street and Customs Street West. Both are located in close proximity to the subject premises. As such GSH qualifies in having an interest greater than the public generally.”

Design and layout, amenities and good order and hours are cited. Good Spirits objected to the two tavern applications being to operate up to 3am.

“There is concern that this will increase potential noise issues in the area,” the objection said.

Entry to Market Square was also cited as “essentially privatised and access restricted during trading times of the business. Pedestrians must continue to feel welcome to enter Market Square via this walkway without fear of walking through what looks like a large business,” Good Spirits submitted to the council.

Molloy previously announced the new HeadQuarters would open tomorrow, evolving from the old restaurant and promising it will be more stylish.

Richard Sigley of Nourish Group (left) and Geoff Tuttle CEO of Good Spirits Hospitality. Photo / Supplied
Richard Sigley of Nourish Group (left) and Geoff Tuttle CEO of Good Spirits Hospitality. Photo / Supplied

“We’re trying to fill a niche in the market,” he said.

Auckland Anniversary weekend was a big focus, he said, with the business planning to be open by then. However, that is now in doubt.

He said his new HeadQuarters would satisfy a demand not now met in the area.

“Clearly, Soul has a niche. Bivacco [Italian restaurant] has a niche. There are some other places in the Viaduct that do good alcohol-driven operations, such as Danny Doolan’s, and Foxes is a good sports bar.

“Dr Rudis and [Saint] Alice are well-known for what they’re good for, great views and nice premises. But we think there is an opportunity to capture the market between Soul and Bivacco. We sit right in the middle,” Molloy told the Herald last month.

The old HQ was a pop-up, Molloy said, and he was reluctant to spend significant money on it.

In November, Omega Hospitality & Retail applied for tavern licences for Headquarters and Little HQ at 95-99 and 103-109 Customs St West.

The document acknowledged Molloy’s criminal conviction two years ago for breaching a suppression order and his serving 350 hours of community service, as well as the $15,000 fine.

But it also said Molloy, a director of EMYM, was well-known in hospitality and operated HQ for several years without compliance concerns.

About 30 security cameras would be installed in the new part of the premises and monitoring would happen internally.

The application also cited the pedestrian entranceway into the area.

“The public walkthrough will be managed to ensure there is no discomfort to those passing through and the area will be designated as unsupervised.

“A security guard will oversee the area during evening/night trade most likely from Thursday to Sunday.

“It is understood by the applicant that there is a risk to patrons and public in this area and the team will be made aware of those risks including runaway bag thefts. Signs will be erected to advise customers to take care of their belongings,” the application said.

Good Spirits is trading at .02c, down 63 per cent annually.

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