A California-based restaurant group is facing a lawsuit demanding $1.876 million in unpaid balances and $500,000 in legal fees following the abrupt closure of its seven Bay Area establishments and the termination of approximately 300 employees. The suit was filed in Eerie County Supreme Court by lender Samson MCA against Vine Hospitality, the parent company of the now-defunct chain.
According to the lawsuit, Vine Hospitality entered into an agreement with Samson MCA on March 19, selling $2.345 million worth of future restaurant receipts in exchange for upfront capital. Under the terms of this merchant cash advance, Vine Hospitality was obligated to pay 8% of its daily receipts to Samson MCA until the advance was fully repaid. The company reportedly made partial payments, returning about $469,000, but ceased payments while its restaurants were still in operation.
Vine Hospitality abruptly announced the closure of all its locations on social media on June 22. The shuttered establishments included two LB Steak restaurants, four Left Bank brasseries, and one Meso restaurant. The company's CEO, Alistair Levine, stated to KRON-TV that "the business wasn’t successful enough to continue operating" and that there are no plans to reopen elsewhere in the Bay Area. Employees were reportedly given minimal notice of the closures, with some staff informed just before the public announcement and a day before their final shifts.
Samson MCA filed its lawsuit seeking the outstanding balance and legal fees nine days after the June 22 closures, totaling approximately $2.4 million. Vine Hospitality has not immediately responded to requests for comment.