Luke Girgis & Seventh Street Ventures Sue Vinyl Group

Vinyl Group have been sued in the New South Wales Supreme Court by entities associated with the sellers of The Brag Media, along with an associated claim by former CEO Luke Girgis over disputes surrounding the company’s acquisition in 2024 and Girgis’ subsequent dismissal.

According to a statement to the ASX by Vinyl Group, the plaintiffs are seeking a $2 million performance payment in connection with Vinyl Group's acquisition of The Brag Media in December 2023. They’re also seeking payment for lost remuneration and the opportunity to acquire bonuses and other options. Vinyl Group acquired The Brag Media in a $10 million deal which was announced in 2023 and closed in early 2024.

The plaintiffs claim that former employee and ‘seller representative’ Luke Girgis was terminated without cause and that Vinyl Group is liable for his alleged termination. The case between Seventh Street Holdings PTY LTD as the trustee for the Seventh Street Trust and Vinyl Group LTD was listed in the Supreme Court on February 14 with a hearing set for March 7. A separate suit between Luke Girgis and Vinyl Group LTD is listed for the Supreme Court of New South Wales on March 5.

Vinyl Group “strongly refutes” the allegations. The company claims in their ASX statement that after an external investigation, Girgis was terminated for “serious misconduct,” alleging that it included “but [was] not limited to” financial misconduct.

The company’s statement adds that, under the terms of the Brag Media acquisition, the latter group’s employees’ performance payments were “contingent” on hitting specific targets and not being terminated.

Vinyl Group claims that The Brag Media’s targets were unmet, and no performance payment is due. The company’s statement concludes with the Board stating that the allegations have “little merit.”

Vinyl Group will “vigorously” defend the allegations and intends to file a crossclaim. The company says it will likely allege breaches of the Brag Media share sale agreement and further misconduct surrounding Girgis’ tenure as an employee and director.

The Music has approached Girgis for comment.

Luke Girgis co-founded The Brag Media with Sam Benjamin’s Seventh Street Ventures and was the CEO of the company. Last June, it was announced that he would no longer serve as the managing director and publisher, following a “thorough review” of the company.

When Girgis’ exit was confirmed, the circumstances were not made clear. He said of his time with the company: “The Brag saw massive growth in a shrinking publishing sector where almost all our competitors either dramatically shrunk in size, left the market or shut down completely.

“We defied the odds and market expectations, and it’s all because of my co-founders, Sam Benjamin [and Poppy Reid]. You have become my best friends, and I’m so proud to know you both.”

After personnel changes, including Girgis’ departure, Vinyl Group was expected to save $750,000 in operational savings for the following year. Vinyl Group has since announced acquisitions, including media businesses Concrete Playground and Mediaweek, last week consolidating its media holdings into the newly-named Vinyl Media, seeing the retirement of The Brag name.

Since Girgis’ departure, he has been appointed CEO of Benjamin’s Providoor food delivery business as well as his talent management business, Be Like Children, which represents personalities including Christian Hull and Poppy Reid. He also runs The Black Hoody website.