AGCO Moves to Revoke Southside Johnny’s Liquor Licence After Stolen Stock Probe
Ontario’s alcohol regulator has moved to revoke the liquor licence of a Toronto bar after finding it repeatedly bought and stored stolen alcohol.
LISTEN TO THIS ARTICLE:The Alcohol and Gaming Commission of Ontario (AGCO) has issued a Notice of Proposal to revoke the liquor sales licence for Southside Johnny’s Bar and Grill, situated at 3653 Lake Shore Blvd W. in Etobicoke. The action follows an investigation by the AGCO’s Major Case Office that concluded the establishment’s licensee and a manager knowingly purchased liquor taken from a nearby Liquor Control Board of Ontario (LCBO) outlet and retained the stolen stock on the premises.
AGCO investigators, working alongside LCBO investigators and local police, say the stolen products were not only served to customers but were also consumed by staff. The probe found evidence that larger bottles were sometimes decanted into smaller containers to make them compatible with the bar’s dispensing system, a practice the regulator cites as further proof of deliberate misconduct.
The AGCO’s Major Case Office coordinates complex investigations that require close collaboration between the commission’s investigative teams and external enforcement partners. In this case, the LCBO supplied investigative support and evidence that reportedly helped establish the origin of the goods.
Dr. Karin Schnarr, Chief Executive Officer and Registrar of the AGCO, underscored the broader regulatory stakes: “Purchasing stolen liquor is a serious breach of integrity that not only violates the law but compromises public safety and introduces illegal goods into Ontario's regulated alcohol market. Ontarians can trust the AGCO to continue holding licensees accountable for complying with all regulatory requirements that help make a safe and responsible marketplace for everyone.”
John Summers, Chief Retail Officer at the LCBO, said the retailer’s investigators played a key role in the case: “LCBO is pleased that the evidence provided by our investigators is helping AGCO to hold businesses accountable. We must work together, along with police services, to help mitigate theft.”
Related: AGCO Launches Youth Compliance Monitor Program to Strengthen Underage-Protection Checks
What This Means for the Licensee and the Market
Under the Liquor Licence and Control Act, 2019, licensees are required to operate with integrity and in accordance with the law. The AGCO’s Notice of Proposal alleges the licence holder’s conduct gives reasonable grounds to believe they will not meet those obligations. If the registrar finalizes revocation, the bar would lose the legal authority to sell liquor and face reputational damage that could prove difficult to recover from in a competitive hospitality market.
Licensees served with a Notice of Proposal have a statutory right to appeal the regulator’s decision to the Licence Appeal Tribunal, an independent adjudicative body within Tribunals Ontario. Appeals must be filed within a prescribed timeframe, typically 15 days from receipt of the notice. The tribunal process can result in the decision being upheld, varied, or set aside, and may include a hearing where evidence and witness testimony are examined.
Beyond administrative sanctions, the involvement of stolen goods can prompt parallel criminal inquiries by police. While the AGCO enforces regulatory standards and licensing conditions, law enforcement agencies determine whether criminal charges related to theft or handling stolen property are warranted.
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Enforcement Trends and Industry Implications
The case highlights growing tensions between retail theft and the licensed hospitality sector in Ontario. Regulators and retailers have increasingly emphasized collaborative enforcement to protect supply chains and ensure consumer safety. For bars and restaurants, the decision serves as a reminder of the legal and commercial risks of sourcing product through unofficial channels, whether for cost control or convenience.
Patrons and neighbouring businesses in Etobicoke will be watching the outcome closely. The licence holder now faces an administrative process that could end with revocation or a negotiated settlement; either outcome will be scrutinized for what it signals about enforcement priorities across Ontario’s regulated alcohol marketplace.
Note: The AGCO has handled this matter through its Major Case Office and is working with enforcement partners. The licence holder is entitled to exercise appeal rights under provincial law, and any tribunal hearings would be scheduled through the Licence Appeal Tribunal in Ontario.
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