Melty, in Virginia Beach’s Landstown Commons shopping center, closed abruptly on April 26.
The Utah-based franchise, founded in 2012, held a grand opening for the store, its first in Virginia, about a year ago. The fast-casual restaurant specialized in gourmet grilled cheese sandwiches, such as barbecue brisket melt, chicken Parmesan, and a four-cheese blend of provolone, fontina, havarti and cheddar.
Melty founder and CEO David Nibley confirmed in an April 29 email that the Virginia Beach location had ceased operations without notice from the franchisees to the franchisor. Though he initially said the closure was temporary and the company was taking steps to reopen the location, including contacting employees, he followed up in a May 6 email, saying the Virginia Beach location is permanently closed following the abandonment of the franchise by its operators, L.R. Rod Enterprises Inc.
“Despite good-faith efforts by Melty Corporate to identify a new operator and reopen the location, those efforts have not succeeded,” he said.
Nibley also said that the company was trying to reach a resolution to ensure employees were paid but that the franchisee has refused to communicate. “Under franchise law, wages are the legal obligation of the franchisee, not the franchisor,” he explained. The franchisees did not respond to questions on May 7 from The Virginian-Pilot about potential outstanding wages. The number of employees was not clear.
Nibley said he provided local employees with information about their legal rights and directed them to the Virginia Department of Labor and Industry’s wage claim process. He also encouraged them to file unemployment claims, he said.
The Virginia Beach Melty closed April 29. (Kendall Warner/The Virginian-Pilot)
Laura Ibeto Rodriguez, who owns the franchise with her husband, Randy Rodriguez, sent a May 7 statement via text message: “After careful consideration, we have made the difficult decision to close our location. This was not a decision made lightly, and it came after facing a combination of ongoing business challenges, changing market conditions, increased competition, seasonal slowdowns, and financial pressures that became unsustainable over time.”
The franchisees said they are grateful to the loyal customers, staff and everyone who supported the small business and their effort to build a meaningful venture in the community.
Chairs remained around the tables at the restaurant as of May 1. The lights were off, doors were locked, and a closed sign was taped to the window. The Virginia Beach store is no longer listed on the company’s website.
Rekaya Gibson, 757-295-8809, rekaya.gibson@virginiamedia.com
Dining and Cooking