A Bay Area restaurant group behind popular locales like Left Bank Brasserie and LB Steak is facing a nearly $2.4 million lawsuit after it suddenly closed all seven of its restaurants and laid off hundreds of staff.
Samson MCA LLC filed the lawsuit against Vine Hospitality on July 1 in New York’s Erie County Superior Court, listing Vine Dining Enterprises Inc., related restaurant companies and CEO Alistair Levine as defendants, according to SFGate.
The lawsuit alleges that Vine Hospitality agreed in March to sell Samson the right to collect $2.345 million from future restaurant sales in exchange for an upfront merchant cash advance. Under the agreement, Vine was to send Samson 8% of its sales until the full amount was paid.
Vine allegedly paid about $469,000 before stopping, according to the lawsuit. Samson is seeking the remaining $1.876 million, along with more than $500,000 in attorney fees.
The complaint accuses Vine of failing to make the required payments even while it continued to operate and generate sales. The allegations have not been proven in court.
Vine announced June 22 that it was closing its restaurants after failed attempts to find additional investors or capital. The closures happened over three days, resulting in roughly 300 employees being laid off.
The group shuttered LB Steak restaurants in San Ramon and San Jose; left Bank Brasserie locations in San Jose, Menlo Park and Larkspur; Petite Left Bank in Tiburon and Meso Modern Mediterranean in San Jose.
Levine previously told the Chronicle that the closures were caused by a challenging operating environment and unsuccessful efforts to raise money for two planned San Francisco restaurants.
Vine Hospitality was founded in 1994 by Levine’s father, Ed, with the first location in Larkspur.
Dining and Cooking