The once-thriving Etta Collective, helmed by restaurateur David Pisor, is grappling with financial turmoil as it stares down a string of bankruptcies and lawsuits casting a large shadow over its future. According to Crain's Chicago Business, the empire is reeling from a recent complaint alleging Pisor defaulted on a $2.5 million loan and concurrent woes including evictions, shuttered locations, and growing debts to vendors and former employees.
Pisor's entrepreneurial saga now includes a default on a hefty loan taken out in July 2022, with Cook County Circuit Court documents filed by Wintrust Bank on January 17 spotlighting the dire straits. Etta's establishments across Chicago and beyond have been sealing their doors, including the River North and Scottsdale locations, documenting a series of events that have led to Chapter 11 bankruptcy filings, as reported by Crain's. The Culver City operation and a venture in Los Angeles also met the same fate after weathering multiple eviction attempts last year, reflecting what has become a national crisis for Pisor.
Despite the recent turmoil, including an unresolved gap of more than $85,000 in Gold Coast rent, Pisor remains hopeful about Etta's prospects in Chicago. With the lone survivor, Etta Bucktown, reportedly still doing well, he told Crain's, "We have a couple of things that are really exciting on the cards," seizing onto a glimmer of optimism for a possible resurgence.
Yet as Etta's legal and financial woes unfold, stakeholders like former pastry chef Aya Fukai, who recently exited her role at Aya Pastry, have been left in a lurch, with Pisor owing her $500,000, according to bankruptcy filings reported by Eater. Pisor has shopped around plans for more ventures, and even as his empire crumbles, a slew of unpaid vendors and unresolved disputes with insurance providers paint a picture of a business leader clinging to an optimistic narrative while former employees and associates pick up the pieces.
What rings perhaps most discordant in the cacophony of Etta's downfall is that Pisor has been accused by former workers of potential misrepresentations regarding a 3.5 percent staff benefits fee charged to customers—allegations suggest it was used for credit card processing instead of healthcare as intended. These claims corroborate a troubling pattern, as an interview with former Etta server Drew Riebhoff obtained by Eater exposes the harsh reality of abrupt terminations and staggered pay.
