Melbourne Rooftop Bar Owner Ordered to Repay $2.1 Million After Business Collapse
Former hospitality figure Ricky Munday faces significant debt repayment after his Melbourne bar, Campari House, was found to have traded while insolvent for years.
Ricky Munday, a former hospitality entrepreneur once valued at $132 million, has been ordered by the Victorian Supreme Court to repay creditors $2.1 million following the bankruptcy of his Melbourne rooftop bar, Campari House.
The court determined that Campari House had been operating while insolvent for over four years, accumulating substantial debts before its liquidation in October 2023. The proceedings were initiated by the landlord, who sought $418,640 in unpaid rent.
Munday purchased the business in early 2015 through his company, Perrydotcom, where he was the sole director. Although he officially resigned weeks before the final settlement in September 2015, with his brother-in-law Gary Mathieson becoming the registered director, the court heard that Munday continued to control the company's finances and operate as a 'de facto director' until its collapse.
Evidence presented to the court revealed that the company ceased paying taxes by at least March 1, 2017, accumulating a debt of $2,031,795.74 by the time of liquidation. Additionally, worker superannuation payments stopped on January 31, 2018, leaving $671,106 owed. By June 2019, the company was $209,083 behind in rent payments.
When questioned by employees about outstanding wages, Munday reportedly told a staff member he was 'just organising some funds.' The court also found that Munday had withdrawn over $800,000 from company accounts for personal loans, as shown in an internal ledger. A separate loan of $780,000, also deemed to be repaid, was ordered from Garrick Pty Ltd, another company directed by Munday.
Munday had initially intended to argue that the business had not recovered from the impact of the COVID-19 pandemic and Melbourne's lockdowns. However, he declined to provide evidence under oath on the hearing day, leading the court to disregard his defense.
While Munday did not dispute the extent of the debt, he argued his involvement was a 'commercial interest' rather than director duties and that the debt alone did not prove insolvent trading. Associate Justice Gobbo concluded, based on the liquidator's evidence, that Munday was 'personally aware that there were grounds to suspect' the company was insolvent as debts accrued. The judge stated that a 'reasonable, diligent and competent director in Mr Munday's position' would have recognized the company's inability to meet its financial obligations.
Munday was ordered to pay $2,115,967 in compensation for insolvent trading. Separately, he and Garrick Pty Ltd were ordered to repay $802,342 and $780,582 respectively.