News & Observer | newsobserver.com | Two restaurants, one messy legal battle

Published: Jun 26, 2007 12:00 AM
Modified: Jun 26, 2007 06:36 AM

Two restaurants, one messy legal battle

South agrees to honor, for now, gift certificates from Restaurant Savannah, which faces several lawsuits

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WHO'S WHO?

Vincent Barresi: One of the original partners in Restaurant Savannah, and the owner of Raleigh staple Vincent's pizzeria.

Chris Bender: One of the original partners in Restaurant Savannah and former founder of other area restaurants, including WickedSmile and Five Star.

Jeffery Moore: A third partner who bought into Restaurant Savannah and later bought out Barresi and Bender.

Kevin and Stacey Jennings: Owners of Raleigh's Urban Food Group, which purchased the assets of Restaurant Savannah at the end of 2006 and later opened a new restaurant, South, in its place.

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At the end of last year, Restaurant Savannah in Raleigh's North Hills shut down for good.

A new restaurant, South, rose in its place in February.

Though Restaurant Savannah no longer exists, its former owners are entangled in a web of lawsuits.

Most of the legal squabbling has happened behind the scenes, but the restaurant's abrupt changes have rippled down to customers. Many who held Restaurant Savannah gift certificates have been turned away. However, the owners of South agreed last week to honor the certificates through the end of August.

The restaurant industry is ripe for such legal woes. Sixty percent of new restaurants fail within the first three years. Stories of subcontractors suing contractors, unpaid bills and stiffed employees aren't uncommon. But even against that landscape, Restaurant Savannah stands out.

Savannah Soldier, Inc. -- the corporate entity behind Restaurant Savannah -- has been sued by vendors for nonpayment, by contractors for breach of contract and by North Hills developer Kane Realty to regain possession of the restaurant after failure to pay $101,485.11 in rent. One former owner is suing another. And a father is suing a son.

Big dreams

Restaurant Savannah was one swanky place.

When it opened in December 2005, the look was understated elegance: chocolate upholstery, sculpted glass chandeliers and a polished green granite bar. For drama, the dining room walls were frosted glass. The look was rich, and the prices were, too. With $30 steaks as entrees, it was easy to drop $100 or more at dinner. The fare was upscale Southern -- she-crab soup and fried green tomatoes shared spots on the menu with bone-in rib-eye steak. It was what fans of the local restaurant scene might expect from the pairing of Chris Bender and Vincent Barresi.

Bender brought style, irreverence and urban chic to downtown Raleigh's warehouse district when he burst on the scene more than a decade ago with the restaurant WickedSmile.

Barresi is a traditionalist who built his reputation as the owner of Vincent's, the pizzeria that was a fixture on Capital Boulevard for more than a decade.

But the two couldn't make it work. Bender said that just before the opening, Barresi sold a 25 percent share of the business to Jeffery Moore, a local businessman. Shortly thereafter, Barresi sold his remaining 24 percent interest to Moore. In August, Bender followed, selling his 51 percent to Moore as well.

Four months later, Moore sold the assets of the restaurant to another couple of well-knowns in the local restaurant business: Kevin and Stacey Jennings of Urban Food Group, which operates several successful restaurants, including Porter's, Frazier's and Vivace.

'It's a real mess'

There have been at least 11 lawsuits filed in Wake County against some combination of Savannah Soldier, Inc.; Restaurant Savannah; Bender; Barresi or Moore.

"It's a real mess," said Donald Bender, who filed a lawsuit against Barresi, Moore and his own son, Chris, to recoup $178,000 of a $180,000 loan he made in December 2005, just before the restaurant opened. Of suing his son, he said: "I have to name everybody involved."

Barresi, for his part, is suing Moore for failure to pay $43,101 of the $138,116.35 he agreed to pay for Barresi's 24 percent share of the business, plus $12,692 related to a car that was part of the deal.

Chris Bender and Barresi declined to comment on the cases, though Bender expressed regret about the turmoil surrounding the restaurant. Asked why the restaurant failed under his ownership, Bender said simply: "I bit off more than I could chew."


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Staff writer Sue Stock can be reached at 829-4649 or sue.stock@newsobserver.com.
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