Investors Sue to Remove Jose Garces From His Restaurants

"Named among the chef’s original Philadelphia restaurants, this venue is included in a lawsuit from early investors and a food distributor alleging systemic financial mismanagement and breaches of contract that harmed investor returns. Plaintiffs accuse the chef of routine unauthorized cash sweeps beginning around 2011, using large borrowings (including a $9 million loan) in ways that deprived investors of payments, and treating inter-company transfers as interest-free loans with no repayment. The investors claim they voted to remove him from his management roles at these properties but that he ignored the vote; the chef rejects the charges, framing the difficulties as the result of major business setbacks rather than misconduct." - Clint Rainey