David Pisor, the once-celebrated restaurateur, faces a crumbling empire as his Etta Collective, including the Bucktown eatery and Aya Pastry, is facing financial collapse. Court documents reveal the group filed for bankruptcy in multiple states and now, Etta's assets are teed up for auction next week. This comes after a string of closures and an alarming complaint by Wintrust Bank alleging Pisor defaulted on a significant $2.5 million loan, as reported by Chicago Business.
Pisor's financial woes include an eviction order for Cafe Sophie's former Gold Coast location and more than $85,000 in overdue rent. In a scramble to salvage his sinking ship, Pisor has been ousted from operational control at an Etta establishment in Bucktown, with Rafael Gaspar stepping in as the appointed manager by the court. Gaspar, who has no prior ties with Pisor, is tasked with enhancing the financial performance of the restaurant in preparation for its impending sale, as detailed in court filings obtained by Eater Chicago.
Despite dark clouds on the horizon, there's a potential lifeboat for Etta: a stalking horse bid from John Leahy, owner of Lulu's in Waikiki, has set the auction floor at $675,000. The court-mandated sale has an April 15 deadline. According to a statement by Pisor obtained by Eater Chicago, his "long-time colleague" Leahy's bid could enable Pisor to keep a hand on the helm at Etta. However, there's a catch: the winning bidder must also shoulder Etta's $2.5 million debt to Wintrust and other liabilities.
Former employees of Etta have been vocal about their troubling experiences, with accusations that management pocketed dental insurance premiums without providing coverage, contributing to staff discontent and operation headaches. Despite the flurry of legal and financial complications, Etta's floundering ship attempts to project an image of normalcy, engaging in social media campaigns and promotions, as pointed out by Eater Chicago. Notably, Aya Fukai, founder of Aya Pastry, claims to be owed $500,000 following her exit from the business, adding to the pile of debts.
As the auction date approaches, and with Pisor's future in the Chicago restaurant scene hanging in the balance, all eyes are on who will steer Etta out of its current storm. Will it be Leahy's lifeline or an alternate victor in the bid for the once-acclaimed culinary name? One thing is certain: the auction's outcome will undoubtedly reshape the dining landscape of Chicago's Bucktown.
