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Shopsy's ordered to quit Front Street
http://www.theglobeandmail.com/servlet/story/RTGAM.20080528.wshopsys28/BNStory/National/
PAUL WALDIE
From Wednesday's Globe and Mail
May 28, 2008 at 5:02 AM EDT
When Gavin Quinn's family-owned business bought Shopsy's Hospitality Inc. a couple of years ago, he had big plans for Shopsy's flagship delicatessen at the corner of Yonge and Front Streets. But those plans have been quashed because of a dispute with the building's landlord that ended up in court and left the Quinns facing a deadline to get out within six months.
"We're still sort of negotiating with the landlord," said Mr. Quinn, whose family also owns P.J. O'Brien Irish Pub and Restaurant and the Irish Embassy Pub and Grill. "We're maintaining a glass half-full attitude."
Shopsy's has been around for nearly 90 years. Harry and Jenny Shopsowitz opened the first delicatessen in 1921 on Spadina Avenue. Their children, Sam and Israel, later created a food empire that was once among the largest specialty meat companies in Canada. The restaurant moved from Spadina to Yonge and Front in 1982 and there are also outlets in Markham and Mississauga.
Shopsy's had gone through several owners when the Quinns' company, Embassy Hospitality Group, offered to buy it in June of 2006 from then-owner Dynamic Venture Opportunities Fund Ltd.
Before closing the deal, Mr. Quinn met with GWL Realty Advisors Inc., the landlord of the Yonge and Front location, to discuss an extension of the lease, which was set to expire on Dec. 31, 2008. GWL had become concerned about the restaurant and wanted to review Embassy's concept before negotiating an extension.
Embassy bought Shopsy's two months later and presented its plans to GWL in November of 2006. By then GWL had reached a deal with Oliver Bonacini Restaurants, owners of Canoe, Jump and Biff's Bistro next door to Shopsy's. The Quinns insisted there was a conditional agreement to extend the lease and they threatened to sue, according to court filings. They also hired a consultant to critique Bonacini's plans and they pressed a senior GWL executive to intercede, according to allegations filed in court.
Fearing that Shopsy's might not leave when the lease expired, GWL went to court seeking an order forcing the restaurant out by Dec. 31. The Quinns countersued, alleging they had a 10-year extension.
In a ruling released Monday, Madam Justice Ellen Macdonald of the Ontario Superior Court said there was no extension agreement and she ordered Shopsy's to leave when the lease expires.
"The landlord is very happy," said Wolfgang Kaufman, a lawyer for GWL. He added that Oliver Bonacini plans to open an Oliver Bonacini Café Grill at the location.
Mr. Quinn said GWL, a subsidiary of insurer Great-West Life, has offered alternative space for Shopsy's in other properties it owns downtown.
http://www.theglobeandmail.com/servlet/story/RTGAM.20080528.wshopsys28/BNStory/National/
PAUL WALDIE
From Wednesday's Globe and Mail
May 28, 2008 at 5:02 AM EDT
When Gavin Quinn's family-owned business bought Shopsy's Hospitality Inc. a couple of years ago, he had big plans for Shopsy's flagship delicatessen at the corner of Yonge and Front Streets. But those plans have been quashed because of a dispute with the building's landlord that ended up in court and left the Quinns facing a deadline to get out within six months.
"We're still sort of negotiating with the landlord," said Mr. Quinn, whose family also owns P.J. O'Brien Irish Pub and Restaurant and the Irish Embassy Pub and Grill. "We're maintaining a glass half-full attitude."
Shopsy's has been around for nearly 90 years. Harry and Jenny Shopsowitz opened the first delicatessen in 1921 on Spadina Avenue. Their children, Sam and Israel, later created a food empire that was once among the largest specialty meat companies in Canada. The restaurant moved from Spadina to Yonge and Front in 1982 and there are also outlets in Markham and Mississauga.
Shopsy's had gone through several owners when the Quinns' company, Embassy Hospitality Group, offered to buy it in June of 2006 from then-owner Dynamic Venture Opportunities Fund Ltd.
Before closing the deal, Mr. Quinn met with GWL Realty Advisors Inc., the landlord of the Yonge and Front location, to discuss an extension of the lease, which was set to expire on Dec. 31, 2008. GWL had become concerned about the restaurant and wanted to review Embassy's concept before negotiating an extension.
Embassy bought Shopsy's two months later and presented its plans to GWL in November of 2006. By then GWL had reached a deal with Oliver Bonacini Restaurants, owners of Canoe, Jump and Biff's Bistro next door to Shopsy's. The Quinns insisted there was a conditional agreement to extend the lease and they threatened to sue, according to court filings. They also hired a consultant to critique Bonacini's plans and they pressed a senior GWL executive to intercede, according to allegations filed in court.
Fearing that Shopsy's might not leave when the lease expired, GWL went to court seeking an order forcing the restaurant out by Dec. 31. The Quinns countersued, alleging they had a 10-year extension.
In a ruling released Monday, Madam Justice Ellen Macdonald of the Ontario Superior Court said there was no extension agreement and she ordered Shopsy's to leave when the lease expires.
"The landlord is very happy," said Wolfgang Kaufman, a lawyer for GWL. He added that Oliver Bonacini plans to open an Oliver Bonacini Café Grill at the location.
Mr. Quinn said GWL, a subsidiary of insurer Great-West Life, has offered alternative space for Shopsy's in other properties it owns downtown.
