Etobicoke Bar Loses Licence After Buying Stolen Liquor to 'Keep Peace' with Thieves
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A tribunal ruling reveals a pattern of criminal complicity at Southside Johnny's Bar and Grill, where the owner and manager bought stolen goods to stave off retaliation from local encampment residents.
What happened: A long-running Etobicoke establishment, Southside Johnny's Bar and Grill, has had its liquor licence revoked by the Ontario Licence Appeal Tribunal (LAT). The ruling follows an investigation by the Alcohol and Gaming Commission of Ontario (AGCO), which alleged the bar purchased stolen liquor from shoplifters and stored unauthorized alcohol on-site.
What it means: This case serves as a stark warning that attempting to manage local crime through illegal payments—rather than law enforcement—is viewed by regulators as a fundamental breach of integrity. The AGCO stated that the bar's conduct "strikes at the core of the province's licensing regime."
**The 'Peacekeeping' Defense** According to reporting from CBC Toronto and CityNews Toronto, owner John Theodorakakis testified that he purchased stolen goods to "keep the peace" with residents of a nearby homeless encampment. Theodorakakis claimed that refusing to buy the items led to retaliation, including: * Slashed tires and damaged vehicles * A stolen licence plate * Graffiti and human feces left at the establishment's door * Thousands of dollars in property damage
Despite these claims, adjudicator Bruce Stanton found that the harassment did not excuse the purchase of stolen property. CityNews Toronto reports that the tribunal noted the bar never contacted its insurer or the police regarding these criminal incidents.
**The Scope of the Complicity** Evidence presented at the hearing painted a picture of systemic illegal activity. CityNews Toronto reports that owner John Theodorakakis and manager Yasmin Gomes admitted to buying stolen goods "several times per week" for several months leading up to May 2025.
Specific details from the investigation include: * **Surveillance:** The LCBO’s Organized Retail Crime and Intelligence Unit captured footage of thieves stealing bottles of Jägermeister and Appleton Estate rum and delivering them directly to the bar's rear door, where Gomes paid cash. * **Personal Use:** Theodorakakis admitted to taking stolen liquor, perfume, and food home for personal use. * **On-site Storage:** Inspectors photographed unauthorized liquor stored in the owner's office and an employee washroom.
**Regulatory Failures** Beyond the theft, the tribunal found the bar violated liquor storage rules. Both CBC Toronto and CityNews Toronto report that the bar used an "overage bottle" system, pouring leftover alcohol into unmarked containers rather than serving from original LCBO containers.
**The Fallout** The tribunal acknowledged that the revocation could be a "death sentence" for the business but ruled that the owner and manager could not be trusted to operate with "integrity and honesty." The decision was further influenced by the owner's intention to keep the manager who coordinated the stolen purchases.
While Theodorakakis had maintained a clean record for 40 years, the bar is now "temporarily closed," according to its Facebook page. The page promises an "exciting new chapter" but makes no mention of the tribunal's ruling.