732 Social Files For Chapter 11; will stay open

[Robin Garr]

From Fat Lip, LEO's news blog ...

732 Social Files For Chapter 11

Jayson Lewellyn, owner and executive chef of the sleek, upscale restaurant 732 Social, has filed for Chapter 11 bankruptcy in federal court. Attorneys for 732 Social stress this is just a reorganization, saying the East Market Street restaurant will remain open.

Full report:
http://fatlip.leoweekly.com/2011/06/01/ ... hapter-11/

How can this place not be making money?

How can this place not be making money?

My thoughts exactly, I've never walked out of there for under $150 for two of us. And they're always slammed whenever I'm in there. I'd say they're getting juiced on the rent, but the article says they haven't paid that since last summer. Does that type of bankruptcy just eliminate the need to pay off old debts?

How can this place not be making money?

One of the pitfalls about the Restaurant business is that one has to deal with constant fluctuating and rising costs.. food costs, labor costs, insurance costs (especially liquor liability) and facility costs diminish your bottom line. Just because one does a good volume in business does not mean one is breaking even or showing a profit. One cant keep "upping" the menu prices because the costs increase. Then there are the little hidden gremlins such as raw product verses yield (You dont get 1.5 pounds of meat out of a 1.5 pound Lobster...but thats what you paid for), waste, trim, and spilliage that add to the equation. Its enough to keep a vigilant Chef awake at night.

As someone with intimate knowledge of the situation, let me be the first to clarify. This reorganization is to protect 732 Social from false claims by it's landlord who have stated in court that 732 social has no valid lease to occupy the space. Without a valid lease - business’s licenses, insurance, etc., are all invalid and operations are in jeopardy. Social's position is simply that it's lease is valid and their is no outstanding balance owed.

This has nothing to do with finance, this is about protecting 732 Social and keeping a great thing open for the city. Not to mention, the litigation Social has filed against its landlord clearly states the true problem - dating back almost 2 years in it's entirety. The false eviction action Social was currently under, to the best of my knowledge, looked like an attempt by the landlord to stop the valid litigation from moving forward.

As someone with intimate knowledge of the situation, let me be the first to clarify. This reorganization is to protect 732 Social from false claims by it's landlord who have stated in court that 732 social has no valid lease to occupy the space. Without a valid lease - business’s licenses, insurance, etc., are all invalid and operations are in jeopardy. Social's position is simply that it's lease is valid and their is no outstanding balance owed.

This has nothing to do with finance, this is about protecting 732 Social and keeping a great thing open for the city. Not to mention, the litigation Social has filed against its landlord clearly states the true problem - dating back almost 2 years in it's entirety. The false eviction action Social was currently under, to the best of my knowledge, looked like an attempt by the landlord to stop the valid litigation from moving forward.

That s*cks. My sympathies that you have to deal with this BS, Jason.

Deb

It seems like a lease dispute would result in a lawsuit, not a bankruptcy filing.

I see what is happening now. My sympathies to Jason for having to go through this! In my previous post I was answering a question from Mark Head, not implying anything about Jason. I think that for protection of his assets and hard work, the Chapter 11 was the right thing to do while this mess is sorted out. Good Luck Jason, and keep us posted!

It seems like a lease dispute would result in a lawsuit, not a bankruptcy filing.

All,

Can we agree to stop hypothesizing about something we don't know about? These kind of rumors can do damage to a business, and create alot of unnecessary noise for 732 to deal with at an already difficult time. These kind of disputes are no fun for anyone involved.

Deb

It seems like a lease dispute would result in a lawsuit, not a bankruptcy filing.

All,

Can we agree to stop hypothesizing about something we don't know about? These kind of rumors can do damage to a business, and create alot of unnecessary noise for 732 to deal with at an already difficult time. These kind of disputes are no fun for anyone involved.

Deb

This X 10

[Robin Garr]

here's the leo article:
http://fatlip.leoweekly.com/2011/06/01/ ... hapter-11/

Did you copy that out of the original post?

here's the leo article:
http://fatlip.leoweekly.com/2011/06/01/ ... hapter-11/

Here's my favorite quote from the LEO article:

..."the ongoing dispute between the owners of Basa and Lewellyn got a bit messy, with Lewellyn pleading guilty to harassment after allegedly throwing a beer in Steven Ton’s face."

Wonder if Jason was just pissed over being served ribs from Doc Crows that were falling off the bone ?

here's the leo article:
http://fatlip.leoweekly.com/2011/06/01/ ... hapter-11/

Here's my favorite quote from the LEO article:

..."the ongoing dispute between the owners of Basa and Lewellyn got a bit messy, with Lewellyn pleading guilty to harassment after allegedly throwing a beer in Steven Ton’s face."

Wonder if Jason was just pissed over being served ribs from Doc Crows that were falling off the bone ?

LOL...that's good Steve.

I do not condone what Jason did, nor do I know Steven Ton. However, unless the beer was still in the bottle or a metal keg (Jason would have to be Hulk-like to throw that) pressing charges for something like that is down-right catty. Grow-up, step out-side, settle it like gentlemen and move on.

DD

[Robin Garr]

if any of you have ever suffered from migraines, you would know what i'm talking about. it's debilitating...

I hope you feel better soon, Annemarie! That's no fun!