bankruptcy

Corner Bakery closes in Courthouse after company declares bankruptcy

By ARLnow.com
1/3

Corner Bakery Cafe has closed its last remaining Arlington location, in the Courthouse neighborhood.

Closed signs were posted on doors of the restaurant at 2111 Wilson Blvd this morning and employees could be seen inside organizing items. The fast-casual bakery-slash-cafe chain just declared Chapter 11 bankruptcy and has struggled amid the pandemic and work-from-home trends.

Known for serving breakfast and lunch to an office-dwelling crowd, and for catering meetings and other workplace events, Corner Bakery has also struggled to compete with larger rival Panera.

A sign on the door of the Courthouse cafe, which is no longer listed on the company’s website, encouraged fans to visit the nearest location, on L Street NW in the District. There are now three Corner Bakery locations in D.C. and one in Bethesda, according to the website.

A Crystal City location closed in 2015.

How a local CEO muscled through bankruptcy and pivoted from coworking to software

By Jo DeVoe

Sponsored by Monday Properties and written by ARLnow, Startup Monday is a weekly column that highlights Arlington-based startups, founders, and local tech news. Monday Properties is proudly featuring 1515 Wilson Blvd in Rosslyn. 

A relatively new app that helps startups navigate the labyrinthine government contracting process, collaborate with each other and land contracts has recently nabbed its third state funding round.

The goal of the app, called FedScout, is to improve the outcomes for companies that set out to work for the government. Of the 120,000 companies that register to sell to the government each year, about 60% drop out after the first year because of how difficult the process is, according to the app’s founder, Geoff Orazem.

Orazem founded the Eastern Foundry — a coworking incubator for government contractors that has since gone out of business.

“Ever since I left the Marine Corps and McKinsey & Company, this is what I’ve been trying to do: Make the federal government work with startups more effectively,” he tells ARLnow. “This is just the new chapter toward that goal.”

Orazem founded Eastern Foundry in Crystal City in 2014, later expanding to Rosslyn, adding space to its Crystal City location in 2017 and expanding to North Carolina in 2019. While these coworking spaces fostered collaboration between tenants of each space, he said Eastern Foundry just couldn’t encourage “cross-pollination” from Crystal City to Rosslyn for which he had hoped.

Eastern Foundry in Rosslyn in November 2019 (Staff photo by Jay Westcott)

“It turns out, even though [Rosslyn and Crystal City] are only 15 minutes apart, people are busy and it’s hard to convince people to drive, find parking and then pick up kids from soccer,” he said, adding that fostering collaboration between Virginia and North Carolina was an even taller task.

Then came the one-two punch of the rise and fall of WeWork — which, supported by large foreign investors, was able to pump out offices while hemorrhaging money — and the remote work shift caused by Covid. But by 2021, Eastern Foundry closed a checking account that contained $0 and court records indicated the coworking company had no cash and neither owned or leased any commercial property, according to the Washington Business Journal, which reported the company’s bankruptcy filings in 2022.

“WeWork distorted a market. The wake off their bow put a hole in us and then we went straight into Covid. I don’t think there’s a world where we could stay open. We were one of many operators that went under,” he said. “[That] was eight years of my pride, love and personal money. Eastern Foundry’s demise was a huge loss.”

His saving grace was a separate company he founded in 2016, called Federal Foundry.

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Punch Bowl Social Hiring Ahead of Expected Reopening

By ARLnow.com
1/2

It looks like Punch Bowl Social in Ballston will be reopening, after all.

The Arlington location of the national “eatertainment” chain recently posted hiring announcements on Facebook and on its front door, though it remains temporarily closed for now.

Located at 4238 Wilson Blvd, the three-story entertainment, dining and drinking complex — featuring bowling, shuffleboard and other beer-friendly social games — closed at the outset of the pandemic, reopened in October, then closed again just before Christmas.

The closure followed the Denver-based chain declaring bankruptcy. It said at the time that it was closing most of its locations to conserve cash, after having its once-high-flying business devastated by the pandemic.

As reported by the Wall Street Journal on Wednesday, Punch Bowl Social is poised for “a smooth Chapter 11 exit” after a court settlement with a key lender. Earlier last month, the CEO of the chain’s new owner said he was focused on reopening locations, confident that customers would return as more people get vaccinated.

On Tuesday, however, the Washington Business Journal reported that a previously-planned location in D.C. is unlikely to move forward due to the company’s financial challenges, making the Ballston location the only Punch Bowl Social in the Washington area. The next closest Punch Bowl outpost is in Cleveland.

So far, there’s no word on an opening date for the Ballston location. The company’s website only says it will be “reopening soon.”

Morning Notes

By ARLnow.com

Metro 29 Diner Back Open — After temporarily closing in late December due to “COVID-19 concerns,” Metro 29 Diner on Lee Highway reopened earlier this week. [Facebook]

Arlington Rents Going Back Up — “In what might be another sign of a return to a semblance of normalcy, average rents for Arlington apartments increased in February for the first time since the start of the COVID pandemic. The 0.7-percent month-over-month increase also mirrored the national index, which reported its biggest monthly increase since June 2019.” [InsideNova]

Alamo Drafthouse Declares Bankruptcy — A centerpiece of some of the changes in Crystal City is the planned Alamo Drafthouse movie theater. But the company just declared bankruptcy, potentially putting new theater projects in jeopardy. [CNBC, @abeaujon/Twitter]

More Edging Work Along Trail — “The morning volunteer session this Saturday has sold out but we still have 8 spots open for the afternoon session. Come help us continue to uncover the [Mt. Vernon] trail and make it a little bit wider.” [@MtVernonFriends/Twitter, Eventbrite]

Don’t Worry About Flipped Car at Fire Station — “Have you driven by one of our fire stations and noticed an overturned car? Don’t be alarmed, it’s likely a vehicle extrication training prop like the one pictured below at Fire Station 5! These vehicles provide us high fidelity training to respond to serious auto crashes.” [@ArlingtonVaFD/Twitter]

Garvey Still Confident in Dorsey, Despite Fraud Allegation in Bankruptcy Case

By ARLnow.com

Arlington County Board Chair Libby Garvey says she has confidence in her Board colleague Christian Dorsey, despite his continued legal and financial troubles.

As first reported by the Washington Post, Dorsey’s long-running personal bankruptcy case was dismissed by a federal judge last week after Dorsey overstated his debt obligations in “an act of overt misrepresentation,” according to the bankruptcy trustee.

Dorsey told the Post that he “vigorously disputes” the allegation that he deliberately and fraudulently misrepresented his finances.

It’s not the first time that money issues have landed Dorsey in hot water. He failed to disclose a $10,000 political donation from a transit union, leading to his resignation from the WMATA board earlier this year. He promised to return the donation but initially failed to do so, at one point claiming that a check was lost in the mail, before finally delivering a cashier’s check in person to the union this summer.

Despite all the issues, Garvey said in a statement to ARLnow that Dorsey has her confidence.

“Throughout this most challenging year, Mr. Dorsey’s work and support have been extremely valuable as the Board and Arlington have navigated multiple challenges and crises,” Garvey said. “Because of my experience with Mr Dorsey this year and over past years, I am confident, despite his personal financial issues, that Mr. Dorsey has provided and continues to provide important service to the people of Arlington.”

“While I do not believe his personal financial issues affect his standing on the Board, the question for us all is how this affects Mr. Dorsey’s standing among the people we serve,” Garvey continued. “All our work is affected by perceptions among those we serve and with whom we work. At this time, I do not know how those perceptions will develop after this latest publicity nor how they will balance out with the very real benefit Mr. Dorsey provides to the Board and Arlington.”

ARLnow asked Dorsey whether he intends to continue serving his term on the Board, which runs through the end of 2023. Through a county spokeswoman, Dorsey said he “has nothing to add at this time beyond his quotes to the Post.”

Morning Notes

By ARLnow.com

Dorsey’s Bankruptcy Case Dismissed — “Arlington County Board member Christian Dorsey, whose ethical and financial difficulties have tangled him in a web of false statements over the past year, fraudulently misrepresented his assets while filing for bankruptcy, a federal court ruled Friday… It was ‘an act of overt misrepresentation,’ [bankruptcy trustee] Thomas P. Gorman told the court at a hearing on Thursday, and ‘misconduct . . . so over the line’ that punishment was warranted.” [Washington Post]

Holiday Shopping Safety Tips — “ACPD wants you to have a happy and safe holiday season. While many are choosing to shop online this year, those shopping in-store are encouraged to be mindful of these safety tips.” [Twitter]

Event for Military Families Today — “An annual Winter Wonderland for Military Families hosted by a former NFL player and his wife will look very different this year due to the COVID-19 pandemic. Derrick Dockery and his wife Emma will hold a drive-thru version of the event that provides toys and holiday cheer to military kids and families on Dec. 7 at a parking lot in Arlington, Virginia through their nonprofit, Yellow Ribbons United.” [Radio.com]

Santa Visit Still on This Weekend — “Santa Claus has paid a visit to the Cherrydale Volunteer Fire Department every year for over a century and he’s not going let the coronavirus pandemic force him to break that streak. In the interest of public safety, the jolly old elf will be meeting children outside this year in the parking lot of Cherrydale Baptist Church, which is located at 3910 Lorcom Lane.” [Patch]

More on CaBi Station at DCA — “Arlington County, Virginia, has installed a Capital Bikeshare station at Reagan National Airport, making it the first major metropolitan airport in the U.S. with a dock-based shared bike program. It is the 99th Capital Bikeshare dock installed in Arlington County.” [WTOP]

Gunston Coordinator Honored — “Shantha Smith, an education coordinator at Gunston Middle School, has been named a recipient of the 2020 Mary Peake Award for Excellence in Education by the state government. Awards were presented Dec. 3 in Richmond, and were named after a pioneering African-American educator.” [InsideNova]

Columbia Pike Donut Shop Has Closed Permanently

By ARLnow.com
1/3

The former Sugar Shack Donuts along Columbia Pike will not be reopening, after the restaurant’s owner filed for Chapter 7 bankruptcy.

The Washington Business Journal reports that former state lawmaker Rob Krupicka — a Sugar Shack franchisee who was in the process of rebranding his locations as an independent, plant-based cafe called Elizabeth’s Counter when the pandemic struck and forced them to close — has declared bankruptcy and shuttered the 1014 S. Glebe Road location in Arlington for good.

The store originally opened in 2016.

Krupicka’s D.C. location is also closed permanently, but he hopes to keep the now-rebranded Elizabeth’s Counter location at 804 N. Henry Street in Alexandria open with an expanded outdoor dining area, the Business Journal reports.

The nearest donut shop to the former Arlington Sugar Shack is a Dunkin Donuts inside a gas station at 3100 Columbia Pike.

Morning Notes

By ARLnow.com

Va. Rolls Out Contact Tracing App — “Governor Ralph Northam today announced the launch of COVIDWISE, an innovative exposure notification app that will alert users if they have been in close contact with an individual who has tested positive for COVID-19.” [Commonwealth of Virginia, DCist]

Rosslyn Metro Closes During Rush Hour — The Rosslyn Metro station closed during yesterday’s evening rush hour, reportedly for a COVID-related cleaning. In what may be a sign of just how low ridership remains, ARLnow did not receive a single tweet or email tip about the closure of one of the system’s busiest stations. [Twitter]

Amazon Still Planning on Pen Place Purchase — “It will be some time before the public knows what Amazon.com Inc. has in store for Pentagon City’s Pen Place property, but we have a pretty good idea of how much it’ll cost the e-commerce and cloud computing giant to acquire what will become the second phase of HQ2. Amazon is expected to buy the 10-acre plot from JBG Smith Properties for just under $150 million sometime next year.” [Washington Business Journal]

Local Hotel Gets Financial Lifeline — “Berkadia announced today the $19 million refinancing secured for Hilton Garden Inn, Crystal City… The global COVID-19 pandemic has particularly affected the hospitality industry, leaving many owners struggling to secure the financing they need.” [Press Release]

Matchbox Files for Bankruptcy — Local restaurant chain Matchbox, which has a location in Pentagon City, has filed for Chapter 11 bankruptcy reorganization. “Despite the bankruptcy, Matchbox says it’s in talks with its landlords to keep the restaurants open and will even look to open more locations in the future, albeit with smaller footprints.” [Washington Business Journal]

Morning Notes

By ARLnow.com

County Board Defends COVID-19 Response — “Arlington leaders continue to push back against accusations they could be doing more to address the COVID-19 crisis within the county’s 26 square miles. A number of civic-activists used the public-comment period of the County Board’s April 25 meeting (held ‘virtually’ after the government received state authority to do so) to rap officials for not imposing more aggressive regulation of daily life.” [InsideNova]

More Contributions for Small Biz Grant Fund — “The Arlington County Industrial Development Authority has joined Arlington Economic Development’s (AED) efforts to help small businesses… [The authority] approved a contribution of $326,000 of its own funding. Together with the $674,000 of funding from the County, and the recently announced contributions of $100,000 each by the Crystal City and Rosslyn Business Improvement Districts, total GRANT program funding has reached $1.2 million.” [Arlington County, Rosslyn BID]

Ballston Hotel Donates Rooms to Healthcare Workers — “The Ballston BID is collaborating with local organizations to coordinate free accommodations at the Holiday Inn Arlington at Ballston for essential healthcare workers in the community. Chesapeake Hospitality, which manages the Ballston-based Holiday Inn on North Fairfax, is donating a complimentary block of 50 rooms per day… to frontline medical staff, their families, and those most vulnerable within the community.” [Press Release]

Arlington Gets Okay Social Distancing Marks — “Falls Church has a C+, Fairfax County has a C and Arlington gets a B- in social distancing grades from @Unacast. Virginia’s grade is D- and the U.S. as a whole gets a D+.” [Falls Church News-Press, Twitter]

New Deputy Chief for ACPD — “Arlington County Police Chief M. Jay Farr is pleased to announce the appointment of Captain Adrienne Quigley to the position of Deputy Chief of Police, effective Sunday, May 10, 2020. Deputy Chief Quigley will assume command of the Systems Management Division at a later date.” [Arlington County]

Historic Home and Huge Lot Not for Sale, Yet — “Long coveted by developers and planners for schools and parks, the home built just after the Civil War has stirred interest since the death in 2017 of owner Randy Rouse, the homebuilder and equestrian. But his widow still lives in the home. And this week, it appears that some speculation on marketing the house was premature, the chances that the county could purchase it almost nil.” [Falls Church News-Press]

COVID Case Shuts Down Credit Union Branch — “The Arlington Community Federal Credit Union is closing one of their branches after a staff member tested positive for COVID-19, the disease caused by the new coronavirus, the credit union announced Monday morning.” [Patch]

Bankruptcy for Hair Cuttery, Bubbles — “Ratner Cos., the Vienna-based parent company of hair salon chains including the Hair Cuttery, Bubbles and Cielo, has filed for bankruptcy protection after closing more than 80 locations across the country in March. The company and related entities, including Creative Hairdressers Inc., filed for Chapter 11 in the U.S. Bankruptcy Court.” [Washington Business Journal]

Flickr pool photo by Lisa Novak

County Board Considering ‘Next Appropriate Steps’ for Christian Dorsey

By ARLnow.com

Christian Dorsey’s four colleagues on the Arlington County Board are “disappointed” in him and “considering what, if any, are the next appropriate steps to take.”

That’s according to an email from Board Chair Libby Garvey, sent to a constituent who expressed concern about Dorsey’s conduct and obtained by ARLnow.

Dorsey, who’s currently in personal bankruptcy proceedings, resigned from the Metro board last week after it was revealed that he had not returned a $10,000 political donation from Metro’s largest labor union, as he had been directed to do after being found to have violated Metro’s ethics rules.

Dorsey later told ABC 7 that he does not have the funds to repay the donation, but still plans to do so eventually. He also told the TV station that he has no plans to step down from the County Board.

ARLnow reported last week that Dorsey only had a few thousand dollars in his campaign account at the end of 2019, after paying himself and his wife $25,000 in the form of loan repayments and compensation for work on the campaign, respectively. (He is not accused of any legal wrongdoing.)

In the email to concerned constituents, below, Garvey said Dorsey showed a “lack of judgement” with respect to the $10,000 donation. It does not mention the bankruptcy or other campaign finance matters.

On behalf of my colleagues on the County Board, thank you for writing regarding Christian Dorsey’s failure to return the $10,000 contribution to his campaign from a union of Metro workers.

Mr. Gutshall, Mr. de Ferranti, Ms. Cristol and I understand your concerns and are deeply disappointed in our colleague’s lack of judgement. We appreciate hearing from you. The views of our residents are always important to us, but particularly on this serious matter.

As you may know, Mr. Dorsey has stepped down from the Metro Board. He has told us he fully intends to return the $10,000 donation as soon as he is able. We are considering what, if any, are the next appropriate steps to take. We are very disappointed in Mr. Dorsey’s lack of judgement in accepting the donation, failing to report it in a timely manner, and not returning it in a timely manner.

Sincerely,

Libby Garvey, Chair
Arlington County Board

At the Board’s organizational meeting last month, Garvey expressed support for Dorsey.

“Christian is a real asset to this board, to this community — we’re lucky to have you,” she said.

A county spokeswoman confirmed the authenticity of Garvey’s email but declined to provide additional comments.

EXCLUSIVE: Dorsey Says He Should Have Revealed Bankruptcy Earlier

By ARLnow.com

(Updated at 4:15 p.m.) Arlington County Board Chair Christian Dorsey says he should have, upon reflection, informed the community about his personal bankruptcy filing before November’s election.

Dorsey, who was sworn in for a second term last night, answered a series of questions from ARLnow about his bankruptcy, which was first reported by the Washington Post a few days after the election.

The Post reported in November that Dorsey, 48, “filed for bankruptcy last month after falling behind on his mortgage and accruing tens of thousands of dollars in credit card debt.” The paper noted that the bankruptcy filing came as Dorsey’s South Arlington home was facing possible foreclosure and as his wife dealt with health problems.

Questions have arose in the wake of the bankruptcy revelation. For one, given that the filing was made on Oct. 16, should voters have been informed prior to the Nov. 5 election?

Dorsey tells ARLnow that he now regrets not letting people know despite how personal the issue is for him and his family.

“In retrospect, I should have had a conversation with the community, no matter how difficult, when I filed for bankruptcy in mid-October,” Dorsey said via email Thursday evening. “I do believe, however, that I will demonstrate over the next four years that those who voted for me did not make a mistake.”

Dorsey was also asked about an assertion made by the bankruptcy trustee that he had not submitted his previous year’s state income tax return. Dorsey contended that he did, in fact, file his state taxes.

“I filed, yet I discovered at my bankruptcy hearing that the Commonwealth has no record,” he said. “I have resubmitted my 2017 filing.”

(By law, Virginia’s state tax office is prohibited “from providing information or commenting on specific taxpayer situations,” a spokeswoman said.)

Court documents show that Dorsey expects $5,000/mo in “other income” besides his annual County Board salary of just over $60,000. The bankruptcy trustee objected to that, writing that the $5,000/mo figure “has not been documented or verified.” Dorsey says that income comes from consulting work.

“I do policy and communications consulting,” he said. “I am not comfortable talking about my clients within the context of your article, but attest that they are exclusively 501(c)3 non-profits, political non-profits, philanthropic foundations and universities.”

“None are foreign entities,” Dorsey added. “None do business with Arlington County. None have given to my political campaigns.”

Dorsey’s most recent conflict of interest form filed with the Clerk of the County Board discloses outside work with a pair of firms that paid him more than $5,000 annually: KNP Communications and Upswing Strategies, both in D.C.

Though serving on the Arlington County Board is ostensibly a part-time job, Dorsey’s work for Arlington extends beyond the County Board dais to representation on a number of regional bodies. Dorsey serves on the Washington Metropolitan Area Transit Authority (WMATA) Board, is a commissioner on the Northern Virginia Transportation Commission (NVTC) and represents Arlington on the Board of Directors of the Metropolitan Washington Council of Governments (COG).

(more…)

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