Corporate legal troubles persist for once-prolific area restaurant chain
AI-generated summary reviewed by our newsroom.
- Owners face creditor actions over rent, legal fees and a lottery debt.
- One class suit dismissed; an Oregon WARN violation suit is proceeding.
- Terminated corporate LLC entities could complicate recovery.
Legal troubles continue for entities tied to a regional restaurant chain that once was seemingly everywhere in the Pacific Northwest but is now down to a handful of locations in three states.
Two class-action cases filed by former workers of Shari’s Cafe & Pies have taken different turns in recent weeks, with one voluntarily dismissed and the other pressing on.
Both have faced the challenge of an unresponsive defendant — corporate entities tied to ownership of the chain. Amid those fights, former lawyers for the corporation and a state lottery are seeking to collect on past debts.
In February, another debt-collection case was filed by a Bellingham retail landlord seeking to collect on overdue rent.
The News Tribune reported in September 2024 that the former Oregon-based restaurant chain known for its family-style menu and pies moved to close several restaurants in the region amid tax debt with the states of Washington and Idaho as well as numerous eviction notices and debt collection cases, including in Pierce County, over unpaid rent.
Now, just five of the restaurants remain in Washington state and a few in California and Idaho from a peak of more than 90 locations across multiple states, primarily in the Pacific Northwest.
Washington class-action case began in Pierce County
A Washington state class-action suit was filed in June 2024 in Pierce County Superior Court against Shari’s Management Corp. and 10 unidentified parties. The case was removed to federal court by Shari’s legal team at the time.
Mary Turner of Puyallup and Tyler Crutchfield of Olympia contended in the complaint that Shari’s violated regulations regarding the state’s wage-transparency requirements.
The complaint alleged that the parent company engaged in “a systematic scheme of failing to include the wage scale, salary range, and/or a general description of all benefits and other compensation to be offered in job openings,” going back to January 2023.
That’s when new regulations took effect in Washington state regarding the disclosure of salary and benefits information required in employment listings for employers with 15 or more workers.
At the end of last month, a judge in the U.S. District Court Western District of Washington in Tacoma signed off on the plaintiffs’ motion for voluntary dismissal without prejudice and without an award of attorney’s fees in the individual and class claims.
Counsel for Shari’s withdrew from the case in December 2024, citing a “substantial open balance,” and no legal representation for the defense has since come forward.
After that, the motion noted, Shari’s “has consistently and entirely ignored all telephonic and written communications from plaintiffs’ counsel.”
“In light of the fact that defendant still appears to be suffering from financial distress and approaching bankruptcy, has not engaged with plaintiffs’ counsel whatsoever since the withdrawal of its former counsel, and has not hired replacement counsel to represent it in this complex action, plaintiffs are requesting a dismissal without prejudice,” the filing stated.
It added the plaintiffs were taking the step “in lieu of pursuing a default judgment that will likely not be collectible.”
Attorney Craig Ackermann, representing the plaintiffs, told The News Tribune this month via email in response to questions that while there’s been no bankruptcy filing for the defendants, “they are certainly broke.”
Oregon class-action case continues
Another class-action lawsuit was filed in November 2024 in Oregon after the abrupt end of Shari’s operations in that state and resulting layoffs.
That case, filed by former Shari’s employee Heidi Woebbeking of Portland, Oregon, contended she was “terminated without cause and did not receive 60 days’ notice of her termination,” a violation of the state’s Worker Adjustment and Retraining Notification in mass layoff situations.
According to the lawsuit, the layoffs affected “at least 50 employees.”
The defendants named in the suit include Shari’s Management Corp. and Gather Holdings Guarantee, LLC., neither of which show any listing of attorneys in the case.
Woebbeking worked at the chain’s Grants Pass restaurant, and the complaint stated, “Defendants not only failed to provide any advance notice, but they also failed to pay out the full amount of (Woebbeking’s) and the putative class’s final paychecks.”
In the most recent case activity, a magistrate judge in U.S. District Court for the District of Oregon in February signed the plaintiff’s unopposed motion for a protective order. The order covers items of discovery that will remain confidential, such as payroll information, used to determine the damages awarded.
According to the order, “the WARN Act provides for damages based on each affected employee’s former pay and benefits,” the order noted.
The filing noted, “Defendants have failed to appear and are in default. Plaintiff has sought, and the court has granted, the right to conduct discovery of her own and the putative class‘s damages.”
Woebbeking’s legal team subpoenaed the pay/benefits information from the chain’s former payroll processor. A December 2025 case status report noted, “Once the payroll records are in hand, plaintiff intends to move for default.”
Woebbeking’s attorney did not respond to a request for comment about the case.
Attempts to reach Shari’s corporate representatives about both the Washington and Oregon cases were unsuccessful. Shari’s Management Corp. is listed as delinquent in its state corporate filings.
Other debts add up
Other debt-collection entanglements involving the restaurant corporation remain unresolved.
The closures of the Oregon properties appeared to be tied to debt owed the Oregon Lottery for video lottery-gaming machines, which had been an extra revenue stream at the restaurants in that state.
Melanie Mesaros is external communications program manager for the Oregon Lottery. In response to questions, Mesaros told The News Tribune via email that the balance owed has climbed past $1 million, “which includes interest charged each month.”
Mesaros added, “The last payment we received (via collections) was on 4/3/25 for $537.12.”
Also in Oregon, another federal case in U.S. District Court in Portland shows that a legal team formerly representing Shari’s Management Corp. was awarded a default judgment in December 2025 for payments owed the firm totaling $137,726.73 plus interest.
The group’s motion for default stated, “Plaintiff’s likelihood of meaningful recovery would be substantially diminished if default judgment is not entered.”
It added that the Oregon Shari’s entity had “ceased operations and, absent a bankruptcy filing, recoveries will be dictated by the order in which creditors obtain judgment.”
No further filings have been entered in the case, and there are no attorneys listed for Shari’s in the case.
Gary Blacklidge, an attorney for the plaintiffs, told The News Tribune via email in response to questions that “The judgment may likely be uncollectible,” noting the lottery debt among other issues.
New holding company, same leader
Business license information and one recent Washington debt-collection lawsuit indicate parent company handoffs to new entities with the same leader.
Tax warrants filed against the restaurant chain’s corporate ownership in Washington state from 2023 and 2024 in Thurston County Superior Court show no new records or judgments filed against the business. A search of the state Department of Revenue’s website shows Shari’s Management Corp. excise tax account “closed.”
Beverly Crichfield, a DOR media representative, told The News Tribune, “Tax confidentiality laws prohibit us from sharing any information about whether a business has made payments.”
Two other LLCs, Lena Real Estate Holdings and Lena Brands LLC, now appear to be tied to the remaining Washington restaurants’ business licenses, according to DOR business listings. Parent company Lena Holdings on its website states it provides “financing solutions for distressed restaurants” and “specializes in independently sponsoring investments focused on revitalizing legacy brands and supporting innovative, entrepreneurial teams.”
Lena Holdings and Lena Brands show former Shari’s Management Corp. CEO and president Samuel Borgese as governor of each entity, and Lena Real Estate Holdings appears as a subsidiary of Lena Holdings.
Each was registered in late 2024, and each has a Texas business address, with the Lena Brands entity sharing the same address last listed for Shari’s Management Corp.
Each also is listed as “terminated” on the state’s corporation filings website after not filing an annual report notice for this year.
A legal complaint filed Feb. 5 in Washington state indicates a similar pattern tracked to 2024 with the various debt-collection cases for rent.
The complaint filed in Whatcom County Superior Court, a copy of which was obtained by The News Tribune, seeks nearly $30,000 in past rent, late fees, administrative fees and other charges from Lena Real Estate Holdings and Lena Holdings for the Shari’s Bellingham site.
The landlord’s attorney did not respond on Friday to a request for comment on the case; the Lena entities do not list an attorney. Lena Holdings did not respond to a request for comment from The News Tribune sent through an online contact form.
Previous reporting by The News Tribune contributed to this report.
This story was originally published April 7, 2026 at 5:00 AM.
