The parent of one of Orange County’s swanky celebrity-backed restaurants, The Clubhouse at South Coast Plaza, has filed for bankruptcy as a prelude to being bought.
Chicago-based The Clubhouse Where You Belong LLC filed for Chapter 11 bankruptcy protection on Oct. 4 and found a buyer, according to Paul Craft, Clubhouse’s vice president of operations.
Lurie Investments Inc. of Chicago, founded by deceased real estate and investment entrepreneur Robert H. Lurie, plans to buy Clubhouse and its three upscale restaurants in Costa Mesa, Atlanta and Chicago for $7.5 million in cash, according to Craft. Lurie will also assume an undisclosed amount of debt.
The sale is pending bankruptcy court approval, expected on Oct. 30. Existing management will run the company, Craft said.
“(The Lurie group) put together a bid to take the company out of bankruptcy, clean up our debt and balance sheet and put us in a position to grow,” Craft said.
Clubhouse restaurants will remain open during the transition and no employees were laid off, he added. The news comes on the heels of some changes at the South Coast Plaza restaurant,Clubhouse’s worst performing location, according to Craft. The managing partner, executive chef and director of sales recently left and have been replaced. The restaurant has a staff of about 152.
“We just didn’t operate that property as efficiently and effectively as we will in the future,” Craft said. “We haven’t been an integral part of the community like we wanted to be.”
The restaurant hopes to turn that around. Plans call for improved food quality, enhanced catering operations (a big chunk of the restaurant’s sales) and the addition of entertainment on Thursday and Friday nights.
“The main emphasis is going to be on creating a comfortable California cuisine and (being) a little more female-friendly than what we’ve done in the past,” Craft said.
The bankruptcy and impending sale call into question the future of the star-studded partners that helped launch the Clubhouse with lots of fanfare.
Director and actor Kevin Costner, pro golfers Jack Nicklaus and Fred Couples and movie star Robert Wagner are investors in the $10 million Costa Mesa restaurant, which has 12 primary owners and 90 investors. Costner, Wagner and Couples made headlines and drew crowds in 1999 when they attended the restaurant’s grand opening.
But until the bankruptcy proceedings are over, Craft said, The Clubhouse will not know what their position is.
“We very much appreciate their association,” he said. “Their involvement has been critical to our success.” n
