Forsythia restaurant closes as bank files to recover 5,000 from chef Christopher Kearse.
Chef Christopher Kearse’s esteemed Old City restaurant, Forsythia, has unexpectedly closed its doors, following significant legal action from a creditor demanding nearly 5,000 attributed to loans Kearse allegedly owes. This sudden closure has raised eyebrows among patrons and industry observers alike, occurring just days after Univest Bank & Trust Co., based in Souderton, filed court motions in Philadelphia’s Common Pleas Court against Kearse and his associated companies, CWKearse LLC and FrenchAF LLC.
The court documents indicate that Univest, the lender, is pursuing repayment of three Small Business Administration (SBA) loans totaling over 5,000. The legal filings include a request for the total amount in principal, as well as interest, penalties, and attorney’s fees. Both CWKearse LLC and FrenchAF LLC manage Forsythia and Kearse’s other establishment, Known Associates, a cocktail bar that has remained closed since September.
In responses to inquiries, Kearse suggested that both venues’ current closures are temporary, asserting that he remains up to date on payments for the SBA loans. However, representatives from Univest did not provide comments regarding the situation.
Kearse faces legal challenges that highlight a controversial lending practice known as confessions of judgment, which is currently permitted in Pennsylvania. This practice allows lenders like Univest to obtain court judgments without a hearing if borrowers default on their loans, essentially waiving the debtor’s right to due process. This can significantly expedite the collection process, including garnishing wages or placing liens on a borrower’s assets.
Details from Univest’s filings reveal that FrenchAF LLC had taken out a 0,000 SBA loan in May, with Kearse personally guaranteeing it. The filing states that Kearse and his companies failed to make any required payments, even after receiving a demand letter earlier this month. Additionally, CWKearse LLC secured a separate 0,000 SBA loan shortly before Forsythia’s opening in June 2019, which was subject to multiple payment deferrals before modifications were made in May 2024.
The unfolding financial woes are compounded by a separate legal matter, as Kearse is also facing criminal assault charges from a former manager at Forsythia, with a court appearance initially scheduled just prior to these loan filings. Furthermore, Kearse has claimed that operational issues at Known Associates stemmed from staffing challenges, disputes related to payroll, and theft amounting to over ,000 in checks.
Confirmation from the Philadelphia Police Department indicates that an investigation is ongoing regarding the alleged theft of a checkbook from Kearse’s business office, alongside a reported case of an unauthorized check for ,000 that was cashed. Kearse maintains that most losses related to the stolen checks have since been reimbursed.
As of now, a sign on Forsythia’s door indicates the restaurant’s closure, which Kearse has stated was intended to communicate a temporary situation and not a permanent shutdown. He anticipates the restaurant will resume operations shortly following processing of recent events.
