Pub fight over lost millions
ABITTER row over missing millions and mismanagement is tearing East London pub Nahoon Arms apart.
Staff earning R17 to R20 an hour, some of them single mothers, who went unpaid from Christmas Day to New Year’s Day, are still struggling to get their tips of up to R4 000 paid out.
Creditors are owed thousands and Russell Linde, lawyer for 50% owners Mike and Chrisanne Osner – who make up one side in the ugly fight – admitted they were teetering on the edge of liquidation.
The other side, represented by Linda Gunn, is claiming the business group, which includes Abbotsford Arms, owes her R3-million.
Gunn said she and her husband, Allen, who are soon to be divorced, owned 25% each.
“I will take them down,” she said and unleashed a rash of complaints and financial allegations against the Osners.
Showing a thumbs up, Osner’s attorney, Linde, responded saying: “Go for it. The truth will come out.”
He said all allegations from Gunn were rejected and any non-payment or other mismanagement allegations which happened prior to mid January were rejected.
It was at this point that the Osners, who were sleeping partners, stepped in to fix the business, said Linde.
In January, Nahoon Arms staff approached Saturday Dispatch and blew the whistle on gruelling six- and even seven-day work weeks, often serving the owners lavish meals with copious amounts of alcohol which were allegedly run through the books.
Gunn said she always
Three creditors confirmed they were owed money and had stopped supplying the pub.
However, they said the owners had been speaking to them and making arrangements to pay.
Saturday Dispatch heard that Osner had invested R750 000 in the business, while Gunn said her East Cape Services labour brokerage, which employed and paid staff for the pubs, was not reimbursed.
Earlier in the week, both sides indicated the audit was looking for about R2-million in missing funds.
On Friday, Gunn upped her loss estimation to R3million. — mikel@dispatch.