OH NO say it ain't so Paseo is closed!

Home Forums Open forum OH NO say it ain't so Paseo is closed!

This topic contains 48 replies, has 21 voices, and was last updated by  phoo 3 years, 6 months ago.

Viewing 24 posts - 26 through 49 (of 49 total)
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  • #75680

    Avocado Head
    Participant

    So glad we ran down there a few weeks ago… Agree with Cate, the tofu sandwich was amazing, and I don’t normally like gobs of tofu even though I am one of those vegetarian types.

    Reserving judgement until the details come out.

    -Avo

    #75682
    #75697

    BuffaloHawk
    Participant

    I found this link in a comment section for the Paseo Cuban roast pork sandwich. I am curious how close to the real thing it really is. Enjoy if interested:)

    my endless love

    #75699

    Stripey
    Participant

    According to one of the employees that was surprised by the closure sign, Paseo was a great place to work. He said that the 5 that filed the suit are trying to get revenge after being fired, and that the owner had ample cause to fire them. He didn’t go into specifics because of the lawsuit, but hopefully the truth will come out soon. But it’s not confirmed that the lawsuit IS the reason for the closure…

    #75710

    Dave
    Participant

    As a general rule of thumb, owners of businesses that are making a substantial profit (and I’m sure Paseo was), do not close shop in the middle of the night and disappear. While I understand the sentiment behind reserving judgment, I’m pretty confident there is an unsavory story behind the closing.

    #75721

    Kate
    Participant

    It’s weird to shut down so quickly without notice, but not terribly suspicious. They close every year in the winter for some months so they obviously are not completely driven by dollar signs.

    #75722

    Salmon Bay
    Participant

    My hunch on this one would be taxes, lack of payment. Running a cash only business is tricky and tempting. I’ve known several restaurant owners who lost their restaurants due to underreporting and non-payment of taxes. And yes, those sandwiches were damn good!

    #75728

    BuffaloHawk
    Participant

    Dave

    According to this article they had no intention of closing soon

    With labor suit pending, Paseo’s mystery closure hard for fans to stomach

    One of Lorenzo’s landlords, Mark Tolsma, said he was blindsided by news of the Tuesday closure as well. He said Lorenzo had recently signed a 10-year lease for Paseo’s Fremont location.

    “I had no idea. What I got was my daughter calling me from Hawaii saying Paseo’s was closing,” said Tolsma. “That’s kind of weird that it gets all the way to Hawaii before I even found out about it.”

    #75759

    collingswood
    Participant

    Here is some background.
    Last January I stopped by Paseo after they reopened following their annual shut down. I asked the guy taking my order what he had done during the break. He said he had spent the time at the owner’s home in Key West, Florida. I suppose this information could be meaningless or it could roil the waters. If anybody wants to pay my way to Key West, I will selflessly go down there and get to the bottom of the situation!

    #75764

    BuffaloHawk
    Participant

    The Key West, FL location is still open. If you are really craving an authentic sandwich it will be spendy to get there;)

    http://www.yelp.com/biz/paseo-restaurant-key-west

    #75813

    SunsetHillGuy
    Participant

    collingswood – the owner of Paseos lives in Key West and used to fly any of his employees who wanted to go there for the winter break, this was not an uncommon thing. He opened the Key West location a few years back and turned over the day-to-day operation of the Seattle locations to his sons. I used to know the lawyer for Paseos because he once represented me in a case some years ago (I got a lot of free Cuban sandwiches during that case!) but I’ve not spoken to him in a few years so I’m just as dumbfounded as everyone else.

    I for one will miss it greatly, just as I still miss Gordo’s, the burger joint that was in that space for almost 30 years before that. I can still hear the Gordo’s owner say “Teriyaki Burger, no tomato, large fries and what you want to drink?” every time he saw me walk up to the window.

    and unlike what some have written in some of the local publications I never had a problem with paseo’s being cash only, the cost of accepting plastic, especially credit cards, is ridiculous and not worth the hassle for a small business unless you have a product with a big enough price tag.

    #75814

    gracie
    Participant

    Now latest on news they filed for bankruptcy. How in the world, with two striving businesses, very striving have to file bankruptcy? Just signed a ten year lease I Fremont. The lawsuit doesn’t go to court until next October. Nothing makes sense.
    just like the Yankee Diner/Broiler suddenly closing few years back. Night before nothing said to employees. Note on door for people who had banquets scheduled. I don’t remember any reason coming out later. Do you?

    #75815

    SunsetHillGuy
    Participant

    the Yankee Diner/Grill closed due to the plans for some hotel that was supposed to go in nearby but never did (silver cloud i think), they didn’t want the hassle from all the construction.

    #75816

    Shelley
    Moderator

    I suspect the problem is the IRS is one of their creditors.

    http://blogs.seattletimes.com/today/2014/11/paseo-files-for-bankruptcy-may-have-tax-problems/

    But the petition also lists the Internal Revenue Service and the Washington state Department of Labor and Industries as creditors holding high-priority claims of amounts not yet determined and a number of workers owed wages.

    #75817

    SunsetHillGuy
    Participant

    now that would make sense, anytime the IRS is after you it’s not a good thing

    #75818

    great idea
    Participant

    not to be snarky gracie (especially since I’ve tripped up on these words before)…

    however I believe you meant ‘thriving’ not ‘striving’, which means making great efforts or struggling. maybe they were striving at the beginning, but they were thriving by the end ;)

    #75852

    gracie
    Participant

    Great idea..no snarking. Not sure why I typed strive. Of course I meant thriving. Thanks for catching that.

    #75856

    Allison W
    Participant

    I saw that too. Sometimes our braniums get their wires crossed. One time I wanted to go to Barolo for dinner with a friend I work with. He kept forgetting where, finally he said he didn’t have his bathing suit with him. His brain was thinking Banya 5!! Lolz.

    #75859

    Shelley
    Moderator

    For everyone lamenting the closure of Paseo, you can help revive it with the same employees you’ve come to know and love. If you believe in it, the perfect opportunity. See the story on the “front” page here: http://www.myballard.com/2014/11/13/investment-group-launches-kickstarter-to-re-open-paseo/

    And in true Kickstarter fashion they have at the $200 contribution level:

    Receive owner perks such as an owners card that lets you skip the line, receive one free paseo sandwich a month

    Of course that limited edition perk is all sold out now.

    #75860

    Dave
    Participant

    My guess is that the reason Paseo filed for bankruptcy was that it was not paying the full amount of payroll tax it was supposed to- which would not be surprising if employees were being paid cash under the table and wages were being underreported. Under Washington law, owners of a business have personal liability for unpaid payroll tax – unlike most company liabilities for which owners do not have personal liability. Filing the company into a Chapter 7 may, in some instances, give the owner some relief from personal liability if all of the company’s assets are liquidated and applied to its debts. The bankruptcy schedules show very little debt other than potential tax debt scheduled as “unknown.” Certainly the non-tax debts were manageable. It is telling that they filed and left their employees owed for what appears to be a couple of weeks of wages. Per their bankruptcy schedules, they had more than enough cash to pay the wages before filing for bankruptcy, which would be the normal procedure – pay your employees before filing the bankruptcy petition. That would ensure your employees are paid for the work they did. As it stands now, all they have is claims in the bankruptcy for unpaid wages that may or may not get paid. I will bet dollars to donuts that the state found out they were underreporting wages, and not paying tax, and threatened the owners with personal liability, leading to a bankruptcy filing to shield the owners. In any event, the State Department of Revenue and other taxing authorities will need to file claims in the bankruptcy before too long, and we’ll all then know the truth.

    #75866

    SunsetHillGuy
    Participant

    ok i did the kickstarter thing, doubt it will work but if it does I’ll get some good Cuban sandwiches again

    #76227

    SunsetHillGuy
    Participant

    so much for the kickstarter campaign, this came in my email a bit ago:

    Dear Loyal Paseo Fans,

    We were happy to see that we were not alone in our love for Paseo and were thrilled about how many members of the community were willing to show their support when it closed. We truly appreciate all of your efforts and donations, however it appears extremely unlikely that we will reach our goal. As such, we are going end the Kickstarter, and refund everyone’s donations.

    Thanks again!

    Cheers,

    The Savvy Team

    #76344

    Shelley
    Moderator

    Here’s how to make your very own Paseo sammich at home.

    Recipe for the Paseo sandwich at home: Make your own and let the healing begin

    #76345

    phoo
    Participant

    I’ll use that marinade the next time I make shredded pork, though it doesn’t have to be roasted. It is indeed faster doing that way, but a slow cooker or dutch oven will do it deliciously too. It looks like the orange juice may have a large part to play here.

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