A popular west-end Toronto bar that’s been in business for 21 years has lost its liquor licence after it was caught buying stolen alcohol from an encampment “gang.” In a ruling published by the Ontario Licence Appeal Tribunal on July 16, an adjudicator upheld a notice of proposal to revoke Southside Johnny’s Bar and Grill’s liquor licence issued by the Alcohol and Gaming Commission of Ontario (AGCO) in December 2025. The AGCO’s order was the culmination of an investigation into the conduct of the Etobicoke watering hole, which alleged that owner John Theodorakakis and manager Yasmin Gomes had been repeatedly purchasing stolen liquor from members of a nearby encampment and selling it to their customers. According to the ruling, the AGCO accused Theodorakakis and Gomes of purchasing the goods repeatedly over the course of a year before they were caught in the spring of 2025. The investigation On May 21 of that year, the LCBO’s Organized Retail Crime and Intelligence Unit (ORCIU) said, an unidentified woman was caught on surveillance video stealing two 1.75-litre bottles of Appleton Estate Rum from an LCBO store on Lake Shore Boulevard West. The woman was seen handing the large bottles to a man, who was identified as “K.M.” in the ruling. K.M. was then seen entering the back door of Southside Johnny’s. Gomes testified that she paid K.M. $70 for the two bottles that she “presumed” were stolen. An LCBO incident report from May 21 lists the value of the rum at $71.90 each for a total of $143.80. “Gomes confirmed in her oral testimony that, during the transaction for the Appleton’s Rum, K.M. asked her if she wanted anything (else), to which she replied that she could use some Jägermeister,” the ruling states. The next day, the ORCIU continued its surveillance and found that the same woman who had stolen the Appleton rum on May 21 stole two “large bottles” of Jägermeister from the LCBO store at 125 The Queensway. “Gomes testified that K.M. called her on May 22, 2025 to advise that he had two Jägermeister for her. She testified that she purchased the two bottles from K.M. and gave the two bottles to her sister,” the ruling states. Encampment members damaged property, left feces on bar’s front entrance after initial refusal to buy stolen goods: owner In his appeal of the licence revocation, Theodorakakis admitted to purchasing the stolen alcohol “several times per week” leading up to the May 2025 bust, but did so to “keep the peace” with members of the encampment who were harassing his patrons and staff and damaging his property. Theodorakakis maintained that the cash purchases only took place over the course of six months and were in response to K.M. and other members of the encampment coming into the bar, using the washroom, and “badgering customers” to buy their stolen goods. “He testified that his initial refusal to buy the stolen items was met with retaliation by the encampment actors. They stole his vehicle licence plates, damaged his vehicle, wrote graffiti on his back fence, upset a flower box, and left human feces at the front entrance of the establishment,” an excerpt of the ruling read. The gang members caused $5,000 to $6,000 worth of damage to his property, Theodorakakis testified, adding that he feared for his safety and the safety of his employees which led to the purchase of the loot. The ruling stated that although Theodorakakis presented no evidence of the damage, his oral testimony was accepted. Theodorakakis denied that any of the stolen liquor was ever used to serve customers of Southside Johnny’s, but admitted that some of it was for personal use. Prior to the investigation, Theodorakakis submitted that he had held liquor licences for 40 years with a clean record. ‘No confidence the appellant can be trusted’: adjudicator In delivering his ruling, adjudicator Bruce Stanton accepted Theodorakakis’ reasoning for buying the stolen goods, but agreed with the AGCO that he had other options to resolve the issues with the encampment, such as calling police. Stanton said there was no evidence that any calls were ever placed to police and the business’ insurer was not contacted regarding the damage. As for whether Theodorakakis and Gomes were serving and selling the stolen liquor to their customers, Stanton said there was insufficient evidence to prove that fact. In weighing his decision, Stanton noted that Theodorakakis was spending less time at the bar than usual in the months leading up to May 2025 due to illnesses in his family. He noted Theodorakakis’ explanation that he purchased the stolen alcohol from the encampment members partly to “get rid” of them while he was preoccupied. Stanton accepted that revoking Southside Johnny’s liquor licence would be a “death sentence” for the business, and that the move would likely end some employment for some individuals. However, Stanton followed through with the order. “I find the repeated conduct provides no confidence the appellant can be trusted to maintain the high-quality of service and compliance with legal standards that are expected of licensed establishments in Ontario,” he wrote. “Accordingly, I find that the respondent demonstrates that the past conduct of the appellant affords reasonable grounds for belief that it will not carry on business in accordance with the law and with integrity and honesty.” CTV News Toronto reached out to Theodorakakis and his legal team for a reaction to the ruling, but has not received a response. In a July 18 post on social media, the bar said that it was temporarily closing for “the next few weeks” as it works “behind the scenes on an exciting new chapter.” “Big changes are coming. We’re taking this time to make improvements, and we can’t wait to welcome you back when we’re ready,” the post read. A similar sign was spotted in their window on July 23.
