Louisville is losing a popular brunch spot and eatery, with North End Cafe announcing that it is shutting down after filing earlier this month for Chapter 7 bankruptcy protection.
Michael McClain, the attorney for North End Cafe in its federal bankruptcy case, told The Courier Journal that "a number of factors led to the closure the business" and its Chapter 7 filing, "including the COVID-19 pandemic."
The cafe, 1722 Frankfort Ave., which has been in business at its original Clifton location since 2003, has also been facing a federal lawsuit from the U.S. Department of Labor over its alleged failure to pay more than $130,000 in overtime to employees.
North End Cafe had already closed its second location on Bardstown Road in February 2019.
The original Frankfort Avenue location had been closed since mid-March as part of Kentucky's emergency COVID-19 orders to fight the spread of the virus.
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"It is with a heavy heart that we announce the closing of the North End Cafe in the fabulous and welcoming Historic Clifton Neighborhood. It’s been a great 17 years together," North End Cafe said in a news release. "We would like to thank all our regular customers, employees, and neighbors for a wonderful run. Creating and running a small business is challenging work and we couldn’t have done it without you."
In its May 3 filing for Chapter 7 protection in the U.S. Bankruptcy Court for the Western District of Kentucky, North End Cafe reported $0 in assets and over $226,000 in unsecured debts owed to roughly two dozen creditors.
The filing also lists $0 in assets and roughly $45,000 in debts for NEVC LLC, the legal name of the former Bardstown Road location.
Since the start of 2020, North End Cafe reported gross revenue of $358,273.92, according to the filing. For its inventory, numerous kitchen, serving and cooking supplies are also included in the filing as all having $0 in value.
North End Cafe's owners are Christopher Seckman and brothers Walton and Whitney Jones, with each holding a 33% stake in the company.
In November 2018, the U.S. Labor Department sued the owners over allegedly failing to pay 18 employees $131,409.66 in overtime wages plus damages in the same amount for a total of $262,819.32.
The unpaid overtime work allegedly dated back to January 2016, according to the lawsuit, which North End Cafe has disputed in court.
Last month, the federal Labor Department asked a U.S. District Court juge for summary judgement in the lawsuit, according to court records.
But North End Cafe's attorneys in the overtime pay case filed a notice on May 5 that argues the new bankruptcy proceedings should result in an automatic stay of proceedings in the Labor Department's pending lawsuit.
The Labor Department has argued that North End Cafe LLC and NEVC LLC should be considered a joint employer under the Fair Labor Standards Act.
But North End Cafe's owners contend that they should be treated as two separate employers for overtime purposes.
In any case, North End Cafe has become the latest restaurant in the Louisville area to go out of business during the coronavirus pandemic.
"Though our location is brick and mortar ... our legacy is our great food and outstanding employees who made it work," North End Cafe said in its news release. "We know our sweet space will be filled by another exceptional example of local cuisine. Thanks for the memories!"
Reach Billy Kobin at bkobin@courierjournal.com or 502-582-7030. Support strong local journalism by subscribing today: courier-journal.com/subscribe.
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May 13, 2020 at 10:10PM
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Louisville's North End Cafe closing doors for good after filing for Chapter 7 bankruptcy - Courier Journal
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