Starr buying Striped Bass

[michaelklein]

Just a heads-up that Stephen Starr got bankruptcy court permission today to buy Striped Bass for $1.3 milllion. He was the sole bidder. (Remember all those supposed "New York groups"? Only tire-kickers. Money talks, after all.) Full story in Thursday's Inquirer. Two important notes: 1. SB *may* close after dinner service Sunday. Apparently, there is not enough $$ to keep it going, the trustee testified today. Starr says he wants to take it over, but there is the matter of the settlement and the transfer of the liquor license. 2. Starr also told me that he wants the staff to stay, but everyone will have to interview. 3. Gift certificates WILL be honored. But if you have one, use it as soon as you can once SB reopens. It'll come out of a limited pot of money (like $50,000). After that, Starr is not responsible.

[michaelklein]

Whoops. That was *3* points. Long day in court.

[KatieLoeb]

It would have been nice for Mr. Klein to wait until the management staff was notified before plastering his article all over the internet. But, no. By 10:11 PM last night (mere seconds after the meeting with the auditors and attorney where the decision to close on Sunday night was made) there it was for all the world to see. It's a little like kicking the corpse to make certain it's really dead.

There are 110 good, hard working people who just had the rug pulled out from under their feet. Two weeks before Christmas. The devastation and melancholy in this building right now is immeasureable . And seeing this article last night was like creating the wound and then pouring a big heaping pile of salt in it. This "scoop" really wasn't worth that much, was it? It's not like the financial problems of the restaurant haven't been well documented in the press before.

[sara]

Katie

I'm so sorry. Mike mentions closing as one possibility--are you saying it's a definite??

[rlibkind]

I understand employees' feelings (having had my middle management position eliminated in a takeover and having to re-interview with the new owners), but the fault lies not with the messenger but with the management.

Michael Klein could only get his information from one or both of two sources: (1) what was public at the official proceedings and (2) management and/or employees. If senior management knew what was happening and told him before it told middle management and employees, well, clearly senior management made a decision that that was in its best interest, which may or may not be in the lower level employees' interest. Alas, this happens all the time.

As for the employees who felt like they've had the rug pulled from under them, that's a good description. It's how I felt when it happened to me, but I should have seen it coming. Indeed I did, I just went about my daily life and didn't let it get in the way. And that was with a company which wasn't bankrupt!

When a company is bankrupt, the fate of its employees has little to do with how dedicated they are and how well they excel in their jobs. It has everything to do with local economic circumstances, and who controls the money.

I don't have the knowledge or experience to know whether it was mismanagement on the part of Mr. Stein or simply the circumstances and the economic environment, or some combination therefore, that led to the bankruptcy of Striped Bass and the apparent outcome as reporter by Michael Klein. But I do know the employees should not blame the messenger.

[Yannii]

mrs. loeb i understand and respect your feelings and frustartions but i think you may have misplaced your anger in this case. michael klein is just doing his job (which he does very well) and all of us in the restaurant/food community were awaiting his news. i'm sorry that the decision was made to close on sunday, three weeks before christmas, that is truly insensitive, but it's clearly not mr. klien's fault in any way. i'm sure mr. klein's motivations were more about sharing his hard-earned information with the community he cares so much about, rather than fame or whatever for a "scoop". either way, it's a horrible decision to close and i'm sorry for you and your coworkers' loss. as you were so gracious to offer mrs. waks a drink (or two or three) i would clearly be honored to do the same for you any time. you are cobviously a tremendous assest to this board and the philadelphia food/dining community in general. will you still be employed by meal ticket at all? keep your chin up, and maybe find a way to let the rest of the staff leave in a fair manner (unlike avenue b) and hopefully rehire them all in month or so!

[KatieLoeb]

I'm sorry to all whom I may have offended with my prior post. I was understandably stunned to see this released in the press prior to being informed at 10am this morning by the court appointed auditors. The wound was VERY fresh and I was a little raw (I still am) so perhaps I did misdirect my anger at Mr. Klein somewhat. I still stand by my original assertion that it would undoubtedly have been more compassionate to hold the story for just a few short hours to allow the appropriate people to be told through the appropriate channels. I suppose it's the seeming urgency of printing the news that I'm not quite understanding. It's not as if the restaurant's money woes haven't been well documented through this entire painful and protracted death.

I will continue, at least for the moment, to run the beverage programs at Rouge and Bleu. I feel guilty that I am the only one of a truly remarkable team of managers that still has a job. These people are my colleagues AND my friends. What sucks the most about this is that I have the pleasure of working with the most cohesive team of managers I've ever worked with ANYWHERE. You can't throw together a random group of restaurant professionals and get that. You can't buy that. I fervently hope that Mr. Starr has the business acumen (and I think he does ) to realize that the "animate" assets he's purchased are infinitely more valuable than the furniture, dishes and kitchen equipment. He's said in the press that he expects us to re-interview for our positions, and I will certainly do that when that process begins. If there's any mercy in all of this he'll realize that this team is really tight and he oughta just leave that alone, while he provides the necessary financing, structure and guidance that is needed. The Exec. Chef, Exec Sous Chef, all 3 Dining Room managers, myself and the sommeliere have all worked here for a minimum of two years, some for quite a bit longer, and all have been promoted from within after working our way up the ladder. The fact that we're all finally in our "dream" positions and have so much respect for each other is the glue holding us together. No one will ever be able to take that away from us, no matter where each of us lands next.

We have a big staff meeting in a few minutes to drop the bomb on anyone that hasn't heard yet, so I have to dry my eyes and look professional and try and show some leadership during these troubling last few days. The kind words from all of you have made it a bit easier for me to do that.

Respectfully,

Katie Loeb

[bilrus]

Good luck.

[mrbigjas]

Good luck with all this. These kindsa things suck for everyone.

[rlibkind]

Katie,

Your post caused no offense to me, so there's no need to apologize. It's a trying time for all employees, I'm sure, and I hope my post caused no offense to you. What's most difficult is precisely what you pointed to in your second posting, the sadness that comes with breaking up a team (indeed, a family).

FWIW, I recently attended a memorial service for the leader of the company I served for 20+ years before it got sold and broken up. Probably 200 former managers and employees attended, and we all looked back upon our years together under that leader as among the best of our lives. It was more fun than a college reunion. (The leader died of natural causes after of life of more than four score years). Once you get past the current situation, I hope that one day, you can look back at the last few years (and the years go come) with fondness as well.

In the meantime, keep on doing what you do so well!

[KatieLoeb]

I'd like to truly thank everyone from the bottom of my heart for the kindness and concern that's been sent my way today. It's been a truly emotionally abusive day and the thoughtfulness and warm wishes that I've received from all of you has certainly eased that burden.

Your post caused no offense to me, so there's no need to apologize. It's a trying time for all employees, I'm sure, and I hope my post caused no offense to you. What's most difficult is precisely what you pointed to in your second posting, the sadness that comes with breaking up a team (indeed, a family).

It's ironic that you should point this very thing out. I guess I hadn't ever truly connected the dots in this manner before today, but I realize that what makes us "family" is the fact that we've all "grown up together" in the last 6 months under the difficult circumstances the economic challenges the restaurant has presented us with, in addition to watching each other and cheering each other on as we climbed the ladder together. Operating under Chapter 11 has made better managers out of all of us. The budgetary constraints that we've operated with have made each of us freakin' wizards. We've been spinning straw into gold for months now, and we've finally simply run out of straw . I spent the better part of this evening drowning my sorrows with several of my colleagues. We toasted each other and ourselves and stated again and again what a priviledge it's been to work together. That will stand the test of time regardless of where we all end up.

My thanks again to each and every one of you that has expressed their concern. I've passed along your well wishes to my co-workers and they are appreciative as well. I'll keep you all posted as to what happens as I get the information myself.

Warm regards,

Katie

[rlibkind]

'Attagirl!

[KatieLoeb]

'Attagirl!

Thanks! I feel confident in my abilities in beverage cost control accounting (God knows it's been a struggle. But at least on my watch I can say that revenue was up, inventory was down, inventory turn percentage improved dramatically and the ratio of purchases/revenue generated got a lot smaller) and the aethetic side of beverage management as well. I'm in the best spot I've ever been in to find new employment and I'm not as bad off as some of my unfortunate co-workers. This too shall pass and all will be well soon.

[jeunefilleparis]

I love you WW!!( you remember what that means, right Katie?) Great talking to you last night,,,,,,, i m thinking of you

L

[michaelklein]

Folks,

I'm checking back after issuing my original post. I understand Katie's being upset at the news.

I feel I have to address her remark: "I still stand by my original assertion that it would undoubtedly have been more compassionate to hold the story for just a few short hours to allow the appropriate people to be told through the appropriate channels."

To be 100 percent honest, I had no idea that the trustees had not told upper-level staff of the possibility of an imminent closing. But I stand behind my decision to post what I knew, when I knew, Wednesday night. (What else is a real-time restaurant-NEWS website for?)

The senior staff was told at 10 a.m. Thursday -- a full 7 hours after the full story was posted online and surely hours after many people read it in the paper.

Michael Klein

[KatieLoeb]

To be 100 percent honest, I had no idea that the trustees had not told upper-level staff of the possibility of an imminent closing.

Being the co-moderator of this forum I do not wish to indulge in a mud slinging match with Mr. Klein. He was doing his job and that is understood. I only wonder if the source of his story was ever even ASKED who knew or didn't know the information, or if the thought that some folks might be hurt by that information ever even hit the radar screen? Particularly given the company's history of restaurant closings and lack of notice to the employees (Ave. B, Fishmarket). Had the information waited 7 hours no one would have read it online OR in the paper prior to the Manager's meeting.

WW stands for "Wine Wench", only one of my many job titles which include Aphrodite of Alcohol, High Priestess of Hooch, Principessa of Potables and just plain old "the Wine Lady".

[michaelklein]

>>I only wonder if the source of his story was ever even ASKED who knew or didn't know the information, or if the thought that some folks might be hurt by that information ever even hit the radar screen? Particularly given the company's history of restaurant closings and lack of notice to the employees (Ave. B, Fishmarket). <<

------

Katie,

I'll answer you directly. I don't want to sling mud, either. I only wish to explain why I don't think I was being insensitive to the 110 employees of Striped Bass:

To answer your first issue: In the 15 seconds I had after Wednesday's hearing, I did not ask him "who knew" of the POSSIBLE closing. By the way, he was asked directly about the restaurant's future, under oath. The restaurant's lawyer, whom I did quote, cautioned me after the hearing that the closing was "possible" and not definite. That is why I wrote in Thursday's paper: "... the court-authorized manager testified that the restaurant was steadily losing money and could be closed after business Sunday. A decision is expected today." (Today=Thursday, the day you found out.)

(I also wrote in my eGullet post Wednesday night: "SB *may* close after dinner service Sunday.")

I would have been negligent not to include this possibility in my Inquirer story. The public needs to know this sort of thing. Surely you know how many other restaurants simply shut their doors with no apparent notice to staff or to patrons, leaving them stuck for a final paycheck or useless gift certificate. Avenue B was a textbook case.

As it turns out, SB customers with reservations and deposits after Sunday ARE being contacted (see story in Saturday's Inquirer). I'm told the employees are guaranteed their final paychecks next Friday.

To address your other issue: Sometimes bad news hurts. Sorry again you were hurt, but I was doing my job. Good luck to you.

Michael Klein

[Rich Pawlak]

This is yet another sad Philly restaurant story, and hearing personally from Katie some of the really unfortunate situations at SB has been heartbreaking. I grew up in this business, but fortunately my mother and my family never put anyone through anything like this ever.

Michael walks a precarious tightrope with this stuff, often gracefully. I don't think he could help with this situation except to report it.

Let's hope Stephen Starr has a heart under those designer clothes of his. And let's hope he knows what to do with his first 4-star restaurant, too.

[herbacidal]

Michael walks a precarious tightrope with this stuff, often gracefully. I don't think he could help with this situation except to report it.

Let's hope Stephen Starr has a heart under those designer clothes of his. And let's hope he knows what to do with his first 4-star restaurant, too.

i agree, on both counts.

i think michael made the best of an awkward situation on his part.

i also hope/believe that this may be starr's only 4-star restaurant,

so he won't change too much.

[Rich Pawlak]

Michael walks a precarious tightrope with this stuff, often gracefully.  I don't think he could help with this situation except to report it. 

Let's hope Stephen Starr has a heart under those designer clothes of his.  And let's hope he knows what to do with his first 4-star restaurant, too.

i agree, on both counts.

i think michael made the best of an awkward situation on his part.

i also hope/believe that this may be starr's only 4-star restaurant,

so he won't change too much.

Well, according to yesterday's Inquirer, Starr will close the place today and open sometime in the New Year. That's his first mistake, and at the absolutely wrong time of the year.

http://www.philly.com/mld/inquirer/news/lo...hia/7426406.htm

[michaelklein]

That was NOT Starr's decision to close SB now. It was the U.S. Trustees'. The Trustees determined that SB did not have enough capital both to keep running AND to fund the closing of the place (final inventories, salaries, cleanup). There's no way Starr would want it closed now. He'd want some sort of continuity.

[cdh]

MichaelKlein- Thanks for keeping up with the thread and chiiming in with such useful facts.

As you were observing the court proceedings, did the US Trustee make any other specific indications about other restrictions that might affect the potential future of the place? I imagine Starr's lawyers must have gotten pretty deep into operational matters... did they do it on the record?

[michaelklein]

The Trustee sought no restrictions. And the hearing was pretty much free of operational matters on the record, other than the fact that the silent partner was keeping the place afloat by pumping in cash.

[Holly Moore]

Mike -

I just got back from an island that has only tree mail, so am just finding out now about the results of the sale. Were there any other bids or did Starr's initial bid win?

Katie -

If you haven't already, do something I wish I had done when I sold the Upstairs Cafe 20 years ago. Get names, numbers of all the team and stay in touch. Imagine a 10 year reunion of the Striped Bass team. I'd love to know where and what is happening with the Upstairs Cafe team now.

All -

Any indication if Starr is going to keep the level of cuisine of the Striped Bass. Does their incredible seafood buyer come with the deal?

[KatieLoeb]

Mike -

I just got back from an island that has only tree mail, so am just finding out now about the results of the sale. Were there any other bids or did Starr's initial bid win?

Katie -

If you haven't already, do something I wish I had done when I sold the Upstairs Cafe 20 years ago. Get names, numbers of all the team and stay in touch. Imagine a 10 year reunion of the Striped Bass team. I'd love to know where and what is happening with the Upstairs Cafe team now.

All -

Any indication if Starr is going to keep the level of cuisine of the Striped Bass. Does their incredible seafood buyer come with the deal?

Holly:

There's a whole lot of rumor flying around regarding what will happen to SB under Mr. Starr's ownership. One rumor is that he only bought the place to flip it to another buyer that didn't wish to enter the fray of bidding. Since Starr Restaurant Group has the local credibility and financing, it was easier to cut a private deal with Starr than to go through the court. Again, just a rumor, but who knows?

The funniest rumor was started by one of my wine purveyors. He said that part of the renovations would involve motorizing the huge bronze fish sculpture above the open kitchen and turning it into the world's largest Big Mouth Billy Bass that would turn its head to the dining room and belt out "Take Me to the River"!

I've already started an e-mail list of the employees, and as soon as that's complete I'm going to e-mail it to everyone on the list.

Not sure whether Tony the Fish Dude comes with the sale or not. I presume he'd want his biggest client back, don't you? Actually, at one point Tony and one of the produce purveyors wanted to bid and had the money to do so, but they didn't have all of the i's dotted and t's crossed apparently and couldn't enter their bid because they didn't fulfill the very stringent court ordered criteria for bidding. Hence, Mr. Starr's bid was the only one, and the winning one.

Presumably, Mr. Starr wants to keep the name, all seafood theme and level of cuisine the same. Methinks he's looking to find a big-name celebrity chef to "front" and consult, much like Morimoto-san does at the other restaurant.

I wonder aloud how much Stephen Starr wants to prove himself with his first four star "fine-dining" establishment in his stable of properties. I think he would want the public to see that he can do white tablecloths and excellent service too, non? I hope that means he'll hire back a lot of the staff that makes that all possible.