The saga of David Pisor's Etta Collective continues with foreclosure woes for the West Town property housing Aya Pastry. Wintrust Bank has initiated legal proceedings to collect on the $1.4 million mortgage after a reported default. The foreclosure lawsuit, filed on Tuesday, September 10 in Cook County circuit court, names Pisor and his former business partner, Jim Lasky, though Lasky's legal team affirmed his long absence from Aya Pastry's operations following a split last year, as reported by Chicago Eater. Meanwhile, Johann Moonesinghe, who currently heads up Aya Pastry as part of his acquisition of Etta Collective's assets, expressed interest in purchasing the property, should it become available.
In the backdrop of these financial tangles, Aya Pastry's namesake, pastry chef Aya Fukai, had parted ways with the bakery back in 2023, leaving her brand legacy in the balance. Despite her exit, Aya's recipes and branding remain a staple, distributed to local coffee shops in the form of doughnuts and croissants. Amidst dealing with the split from Lasky and the subsequent fallout, Pisor kept Fukai's departure under wraps, the Eater article notes. Now facing foreclosure, Pisor discredited the lawsuit as a "baseless attack" and a "technical default," according to his comments to Chicago's Crain’s.
Previously, in less than stellar circumstances, the Etta and Aya Bakery had resorted to filing for Chapter 11 bankruptcy protection, as the saga unfolded with the abrupt closure of Etta’s River North location and leaving approximately 75 staff members jobless. This move, less than three weeks after the shutdown, was characterized as a strategic reorganization. In a statement obtained by Block Club Chicago, Pisor stated, "We have made a proactive decision to commence this strategic reorganization process with the cooperation of our lender."
Former employees have aired grievances surrounding what they describe as management missteps and a lack of transparency within Etta Collective. A protest was staged by laid-off staff from Etta River North at the Bucktown establishment, seeking clarity on matters including healthcare reimbursements. Pisor has acknowledged a "temporary lapse" in health care coverage due to a dispute, but assured that coverage had been retroactively reinstated with reimbursements forthcoming. "We’re learning as we go and trying to make sure our employees not only get paid for the work they have done, but to help people get new jobs and find soft landings," Pisor told Block Club Chicago after facing a reality fraught with layoffs for the first time.
As Pisor navigates the financial overhaul of his dining empire, customers can still indulge in Etta and Aya Pastry's offerings at their respective Bucktown and West Town locations – the bankruptcy and legal wrangling, for now, not yet disrupting the daily operations. The fate of the West Town property remains uncertain in the wake of the foreclosure suit and the potential for new ownership, with the evolving dining scene hanging in the backdrop.
