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Help Goodbye Horses Survive

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Hello Everyone,


Goodbye Horses Café has been a pillar of the Summer Hill community for the last 5 years. Owners, Morgan and Chris, designed and built the interiors of the café themselves. Goodbye Horses has been a daily stomping ground for many of the fantastic locals in this suburb, and we have loved being a part of this wonderful community. 

At 11am on 17th August 2021, a letter was received from our landlord’s solicitor expressing the intent to repossess the property the following morning (18th August) at 9:30am. This gave us less than 24 hours to even begin to work out how to meet their demands. As of August 17th, our rent was 39 days in arrears, and they were demanding the outstanding amount be paid in full before said lockout time. We certainly didn’t have $13K kicking around.

We have been waiting on our NSW Government small business grants and support to come through for some time now. An amount of time which I deem to be a disgrace on the Government’s part. What good are grants if they arrive after our doors have closed? We explained (as we had before) to the landlords that most of this money would be going directly into their pocket when it arrived (and towards paying our wonderful staff). This was not good enough for them.

Under NSW legislation, mediation between 2 disputing parties in a commercial setting is MANDATORY. This is covered by the Retail Leases Act (1994). Additionally, the NSW Government enacted Covid specific legislation to protect tenants who are engaged in commercial leases. This legislation stipulates that “property owners are required to offer tenants rent relief proportionate to the tenant’s decline in turnover” (Small Business Commissioner, 18 August 2021). When parties are unable to come to an agreement, “they must attend mediation through the Small Business Commission” (Small Business Commissioner, 18 August 2021). Before landlords can take ANY action, certification is required from the Small Business Commissioner that stipulates mediation has failed. Please note, in the 18 months of the COVID-19 pandemic, we have not once received a reduction in rent.

Firstly, at no point have the landlords ever come the table with Goodbye Horses to discuss appropriate rent reductions/waivers/deferrals. Goodbye Horses have been trading at 40% normal earning capacity. It should also be noted that last year during lockdown, the landlord tried a similar thing, and threatened to lock the shop if we couldn’t pay the rent in arrears in full. The arrears accrued, however, were the fault of the Real Estate Agent. Our commercial lease stipulates annual rent rise, a very normal lease clause. The Real Estate Agent, who is responsible for invoicing, failed to include these raises and adjust rental cost for 3 YEARS. Instead of owning their mistake and arranging a payment plan (something we offered to do – we had every intention of paying what we owed), they demanded payment in full immediately. In the 48 hours that followed, we scrambled to put together $34,000. In the middle of a LOCKDOWN.

My point in this backstory is to try and express that we have been mercilessly targeted by the landlord and Real Estate Agent for some time now. Every time they put forward some heinous request, we strive to meet their demands. Because we love our staff and our shop. This regard is not reciprocated – we have been waiting on repairs to significant water damage in the roof upstairs for months and months now. It is dangerous and parts of the roof have previously fallen in. They have tried put the repair onus on us every time we address it. Our commercial lease stipulates that it is the landlord’s responsibility.

On the 18th August 2021, after many calls and emails exchanged by solicitors and our accountants, we found out the landlord still intended to lock our shop! We spoke to Fair Trading, the Police (who said they couldn’t do anything) and the Small Business Commissioner. Each party agreed that while what the landlord was doing was COMPLETELY ILLEGAL, no party had the power to put a stop to it. The Covid Legislation stipulates that “for a six-month period (13 July 2021 to 13 January 2022), commercial and retail property owners cannot take certain actions against an eligible tenant (e.g. evict an eligible tenant) unless they have first renegotiated rent and attempted mediation” (Small Business Commissioner, 18 August 2021). Even after expressing our desire to apply for mediation (on the advice of the Commissioner), the landlord refused. He said he would not back down. The law states “Landlords must not terminate leases for non-payment of rent” (Small Business Commissioner, 18 August 2021).

Morgan and Chris managed to get most of our belongings out of the shop at 6am on 18th August. However, a lot of our equipment is now set to be liquidated as we are no longer allowed back on the premises. 

At 9:30am on 18th August, our shop was LOCKED FOR GOOD. The LOCKS WERE CHANGED. IT WAS ILLEGAL. All of our staff have lost their jobs. We have lost not only our income, but a shop that we called home for 5 years. We were a family and part of a wonderful community, and everything got snatched from under us in LESS THAN 24 HOURS. Nobody could help us.

PLEASE HELP US. The only way we can hold the Real Estate Agent and the landlord accountable is by taking them to the NSW Civil and Administrative Tribunal or the courts.

This costs money. Money we don’t have, and if we did, we would’ve paid our bloody rent. Shame on the NSW Government for not providing legislation that is able to be enforced on a timely basis. You offered us no protection. Shame on the landlord who took our shop from us. Shame on the Real Estate Agent who facilitated the changing of our locks and who was UNCONTACTABLE for the 24 hours period preceding the lockout.

Thank you to the lovely community of Summer Hill who have supported us for all these years. We have loved being a part of your fabulous community.

Organizer and beneficiary

Antony D'Alessandro
Organizer
Summer Hill NSW
Christopher Bull
Beneficiary

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