Hospitality heavyweight's empire in freefall
A prominent Sydney hospitality operator is facing the collapse of his venue empire, with three companies entering liquidation owing more than $2.4 million between them and a string of popular venues shuttered or standing idle.
Jared Merlino, 40, of Coogee, is the director behind a clutch of well-known Sydney venues including Italian restaurant Bartolo, New York-style cocktail bar Kittyhawk and Caribbean-themed bar The Lobo. A fourth venue, Big Poppa's, is listed as temporarily closed. According to the Daily Telegraph, both Bartolo and Kittyhawk have shut their doors, while The Lobo remains in operation.
Two companies linked to Merlino's group — Barrel Barons, which operated Kittyhawk, and Barrel Barons Cash Money, a labour hire entity servicing The Lobo, Kittyhawk and Big Poppa's — have been placed into voluntary liquidation.
Barrel Barons entered liquidation on May 11 owing almost $1.8 million, while Barrel Barons Cash Money has been in the process since February 3, according to documents lodged with ASIC.
Liquidator Nicarson Natkunarajah of Roger and Carson reported that creditors of Barrel Barons Cash Money were owed $499,842, including $426,009 to the ATO and $36,917 in unpaid worker entitlements. Of the $1.77 million claimed against Barrel Barons, $1.65 million was owed to related parties. Both Barrel Barons entities are jointly directed by Merlino and Edward Levy, 48, of Double Bay.
The liquidator's report flagged that the company may have traded while insolvent, attributing the failure to undercapitalisation, poor financial controls, inadequate record-keeping and weak cash flow management.
A voluntary liquidator was also appointed to Bartolo Hospitality in January 2024, with the company reported to owe $117,000 at the time of collapse, including $38,577 to the tax office.
Responding on behalf of Merlino, lawyer Michael Mournehis pushed back on the insolvency characterisation, telling the Daily Telegraph that the liquidator's preliminary view was "a far cry" from any finding of insolvent trading.
"To date, no action has been brought by the liquidator against Mr Merlino for insolvent trading," he said.
"The liquidation of Bartolo occurred following the effect of Covid-19 on the hospitality industry, which is well documented. Mr Merlino spent countless hours attempting to ensure that the business could continue to operate and only chose liquidation when it was evidently clear that trading conditions were too dire."
A further complication emerged around Big Poppa Enterprises, where co-director and equal shareholder Davidson Hanna, 45, launched Supreme Court wind-up action in November last year. That application was dismissed in February and the company avoided liquidation. Mournehis described it as a private dispute with no lasting effect on the entity. Big Poppa's is expected to reopen in 2026 pending an occupation certificate from the landlord.
Kittyhawk, which operated from 16 Phillip Lane in the Sydney CBD from July 2016, had cultivated a loyal following as a functions venue. One former patron, Julie Spencer, told the Daily Telegraph of her connection to the now-closed bar.
"Our reception was supposed to be at another venue which cancelled on us seven weeks before the wedding. I remember looking up Kittyhawk and thinking 'this might actually work for us,'" she said.
"The vibe was great and the reception was unique. We went back every anniversary as tradition and now we can't do that anymore."
Jonathan Jackson, 8th June 2026
