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For two decades, Abbotsford Convent has served as a secular cathedral: 6.4 hectares of crumbling bluestone, wild gardens and creative industry. It is a site defined by the 1990s community uprising that saved the former Good Shepherd convent from being bulldozed for high-density apartments.<\/p>\n
But behind its historic walls this week, amid perfect weather and the hum of visitors for Melbourne Design Week, the convent\u2019s management was brawling with two of its longest-serving tenants as it grapples with drastically reduced state government funding.<\/p>\n
![\"Joe](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/1de2cd183350b37b7b6a17bbf410dc88d81b3958.jpeg\")
Joe Shin with wife Hwayoung at the Convent Bakery at the Abbotsford Convent on Thursday.Luis Ascui<\/p>\n
Interviews with current and former staff at the convent, legal filings, and the open warfare playing out between management and key tenants point to a growing unrest within the organisation. A string of departures, a team member on months of work-related stress leave, as well as the lockout of the Kappaya Japanese restaurant and this week\u2019s attempted eviction of the Convent Bakery have fuelled a sense of institutional crisis.<\/p>\n
The squabbles seem a long way from the public-spirited mission the Abbotsford Convent Foundation was created to protect.<\/p>\n
The leading dissident is Joe Shin who, until this month, ran Kappaya. He and his wife, Hwayoung, also run the historic Convent Bakery. \u201cOur relationship with management became toxic during the COVID lockdowns,\u201d says Shin, when the bakery raised its voice about being locked out of the convent.<\/p>\n
\u201cManagement was unhappy with us doing that.\u201d The relationship never recovered.<\/p>\n
On May 1, Shin arrived at Kappaya to find the locks changed. He alleges the lockout was an \u201cunlawful eviction\u201d that left five staff suddenly jobless. Police were called to challenge the lockout, but the restaurant remains empty.<\/p>\n
![\"Police](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/9dd14add0f9feb7188db7759b340d7fb5005f8f6.jpeg\")
Police attend the Abbotsford Convent on May 1 after the locks were changed at the Kappaya Japanese restaurant.<\/p>\n
\u201cAnyone who raises problems eventually gets moved on here. The tenants that raised issues in the past are no longer here,\u201d Shin says. It is a sentiment backed by the bakery\u2019s previous operator, who was turfed out in 2018 after a near-identical dispute with previous managers.<\/p>\n
The bad blood between Shin and management is visceral \u2013 while The Age is at the convent on Thursday, a Abbotsford Convent Foundation manager approaches Shin and a squabble erupts over whether Kappaya was lawfully shut down or not.<\/p>\n
The Convent Foundation maintains that the repossession of the Kappaya premises was straightforward and properly done, citing \u201cunremedied\u201d defaults. \u201cOur re-possession of the Kappaya premises on 1 May was lawful,\u201d a spokeswoman for the foundation says. \u201cIt was in keeping with our obligations to maintain a safe and responsibly managed precinct.\u201d<\/p>\n
![\"Bakery](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/2b02127f9a8c088ed6c9e8b9b5973f42c2a5862f.jpeg\")
Bakery leaseholder Joe Shin (left) with Age journalist Clay Lucas (centre) and a Abbotsford Convent officer (right) on Thursday.Luis Ascui<\/p>\n
Internal notes from sources not authorised to speak publicly, though, tell of a more clinical motive. The foundation has lost state government funding from Creative Victoria and, in response, is moving to reposition the site as a premier tourist destination.<\/p>\n
The convent already turns over significant revenue \u2013 its most recent financial report<\/a> filed with the charities regulator shows $5.2 million went through the organisation last financial year, with $1.1 million of it coming from car parking and $2.5 million from tenancies.<\/p>\n Funding from Creative Victoria totalling $800,000 will soon come to an end at the convent. This, the Convent spokeswoman says, means the convent needs to do things differently.<\/p>\n \u201cIn an increasingly precarious arts funding environment, it\u2019s more important than ever to be making decisions that align with our purpose, values and vision,\u201d she says.<\/p>\n The convent\u2019s management, for its part, says discussion of major rifts are not occurring and that the dispute with Shin is a major source of unhappiness at the campus.<\/p>\n \u201cWhile we appreciate that Mr Shin is unhappy that his lease is not being extended, it\u2019s deeply disappointing that he is attempting to discredit a not-for-profit, community-owned organisation that supports a creative community of artists, creatives and wellness practitioners,\u201d a spokeswoman says.<\/p>\n Convent insiders, not able to speak publicly, pointed to a high turnover in senior ranks of the 26 full-time staff running the convent over the last 18 months. This includes the departures of the chief operating officer, the finance manager, an accounting manager, a marketing manager, and a tenancy manager going on extended leave.<\/p>\n A spokeswoman says that while foundation staff have come and gone in recent times, this is far from unusual.<\/p>\n \u201cStaff turnover in organisations is not uncommon and we\u2019ve been fortunate to recruit new team members who are contributing new ideas and energy,\u201d she says. \u201cAs the not-for-profit organisation that cares for, and manages, the Abbotsford Convent precinct,\u202fwe have a responsibility to make decisions that are in the best interests of the Convent, our community and the future sustainability of this historic site.<\/p>\n The Convent Bakery, in a bid to harness support from its customers, launched a petition this week<\/a> to save its tenancy, which quickly gathered 1400 signatures.<\/p>\n The Convent Foundation won\u2019t say which operator it intends to replace the bakery with, but not-for-profit All Things Equal \u2013 a charity that creates pathways into the workforce for people with disabilities – posted recently on social media<\/a> that it would soon move into the convent. In her post, chief executive Jess Colgan did not say which part of the convent they would open their new hospitality business in.<\/p>\n<\/p>\n All Things Equal was contacted by The Age on Thursday but did not respond. The Convent Foundation confirmed it is in talks with All Things Equal, but did not say which site on the grounds they might occupy.<\/p>\n On Thursday, acting through major city law firm Corrs Chambers Westgarth, the Convent wrote to Shin terminating the bakery lease. While the firm stated the Convent Foundation is \u201centitled to re-enter and take possession of the premises on May 15,\u201d it offered to allow Shin to remain for a daily fee until a planning tribunal hearing at the end of the month.<\/p>\n Shin argues that both the bakery lease and the Kappaya lease should be substantially extended because of the lengthy COVID lockdowns. The convent argues in response that it has already drastically extended these leases, and that it is entitled to move on both businesses as their agreements have expired.<\/p>\n In 2004, the convent site was gifted to the public by the state government following one of the most successful community campaigns in Victorian history. The foundation was tasked with being a \u201ccustodian\u201d of a community asset, not a corporate landlord.<\/p>\n Under the current board led by chief executive Justine Hyde, the Convent Foundation has recently fought a four-storey retirement village development on its border \u2013 arguing the building would \u201cwall off views\u201d and clash with its ethos.<\/p>\n It led critics to say the foundation was doing its own \u201cwalling off\u201d of the community. The Convent Foundation also recently lost a tender to run the neighbouring Collingwood Children\u2019s Farm.<\/p>\n The bakery is at the heart of the convent site \u2013 the chief executive\u2019s office literally overlooks it.<\/p>\n Domenico Raco ran the bakery for 14 years before leaving in 2018, after his own dispute with management.<\/p>\n Raco says the current situation for Shin is near identical to what happened to him.<\/p>\n \u201cThe change of management had different ideas, and they wouldn\u2019t tell me why I had to go,\u201d Raco says. \u201cI feel for Joe. They\u2019re going to close him down for what? Because they need more money? It\u2019s a not-for-profit, so I don\u2019t understand the logic.\u201d<\/p>\n Start the day with a summary of the day\u2019s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter<\/a>.<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/7a7a360c1473de916949c309e23662aa70d4d93a.jpeg\")
A poster that appeared in toilet stalls inside Abbotsford Convent this week.<\/p>\n![\"Abbotsford](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/6357b71b6f2960081d9cb2edec6fb3c5c7bf95d3.jpeg\")
Abbotsford Convent Foundation chief executive Justine Hyde pictured at the convent in February this year.Alex Coppel<\/p>\n