Elliott Lodging snags Ziggie's name in bankruptcy court

A Chapter 7 bankruptcy filing by a former co-owner of Ziggie’s Café opened the door for the landlord of two of its sites to buy the veteran diner’s licensing rights.

Gordon Elliott, owner of Elliott Lodging Ltd., snagged the Ziggie’s Café trademark after the trustee in co-owner Agim Zendeli’s bankruptcy case approved a $50,000 sale of Ziggie’s licensing rights on Aug. 22, according to court records. The rights were owned by Yummy Foods Inc., Ziggie’s parent company operated by Zendeli and his father, Zulbehar Zendeli, founder of the Springfield café that once spanned 18 locations.

Springfield attorney Bob Sweere, who represented Agim Zendeli in his personal bankruptcy filed in March 2010, said though Zendeli had transferred his stake in Yummy Foods back to his father prior to the filing, the trustee found the assets could be sold to repay debtors.

Springfield Family Restaurant is the new name of the former Ziggie’s Café at 2222 S. Campbell Ave., and it is the only restaurant currently owned by either of the Zendelis. The three other former Ziggie’s locations – on West Kearney Street, in Republic and in West Plains – also have changed their names, according to Scott Bussard, director of licensing for Ziggie’s Café through Elliott Lodging. Bussard said the independent owners, including the Zendelis, declined to pay the licensing fees and adopt the new quality standards.

The actions taken to change their names has quieted a lawsuit filed by Elliott Lodging for unlawful use of the Ziggie’s name, and Bussard said he expects the suit to be dismissed within a couple of months.

“We own that, and if you’re not going to pay, then we don’t want you using (the name),” Elliott said.

Elliott Lodging has sold two licensing rights, both of which are within its hotels on Glenstone Avenue. José Luis Bolanos operates the Ziggie’s site within the Lamplighter Inn South, and Daniel Hernandez operates the café at the Best Western Coach House Inn.

Elliott and Bussard said they went after the Ziggie’s name to preserve the integrity of their properties.

“It’s just not good business to have empty buildings on your property. For a property management business, to have one empty for a while or to have one that continues switching hands – that will kill a building, and then there is no value to that building anymore,” Bussard said. “It will constantly have that stigma attached to it of a failed restaurant.”

Agim Zendeli said he wasn’t interested in working under Elliott Lodging’s umbrella.

“We’ve got our own ideas. We know what we’re doing, and we don’t need anybody else’s advice,” Zendeli said of the café in business since 1983.

Zendeli said he filed for bankruptcy protection after a partnership arrangement connected to Ziggie’s restaurants in Nevada, Mo., and Fort Scott, Kan., led to the filing.

“Nevada and Fort Scott just tortured me,” Zendeli said.

Attorney Sweere said though Zendeli was a minority owner, he was the operating manager and had signed contracts with vendors. As the partnership dissolved, Zendeli was left with the debt.

Sweere said Pedro Bolanos had owed licensing fees to Yummy Foods before Elliott Lodging purchased the rights. As a result, Sweere said Zendeli attempted to take down the Ziggie’s signs at both of Elliott’s hotels, but Elliott would not allow him on the property. The Zendelis filed a case in Greene County Circuit Court to close the sites, but they settled once licensing payments resumed, Sweere said.

Though Ziggie’s is down to only two locations, Elliott said the brand is stable. “We’ve just been making sure that the two that we’ve got are doing a good job, and sales are up,” Elliott said.

José Luis Bolanos, who had previously been partners with his brother, Pedro, at the Lamplighter site, said first-quarter sales were approaching $180,000, up roughly $30,000 per month compared to the same period in 2011.

Zendeli said Springfield Family Restaurant is now focused on improving the former Ziggie’s menu with ingredients from local farmers. He said pictures from areas around the city have been hung on the walls to give the restaurant a hometown feel.

He said he didn’t think the Ziggie’s brand would last apart from the Zendeli family.

“I guess we’ll see what happens. They are trying to copy something that can’t be copied, but that’s OK,” Zendeli said.[[In-content Ad]]