Three weeks after confirming plans to file for bankruptcy, Portland deli franchise Kenny and Zuke's is closing its Northwest Portland bagel shop and bakery.
Owner Ken Gordon made the announcement on Facebook today, saying the restaurant had lost the lease on their Bagelworks storefront at 2376 NW Thurman St. and will be vacating on Sunday, Oct. 20.
"We're sorry to leave the neighborhood. We've been there 10 years," Gordon tells WW. "It was a nice run. But for reasons beyond our control, we can't continue."
Last month, Gordon told investors that Kenny and Zuke's was preparing to file for Chapter 11 bankruptcy in order to keep the business afloat. But Gordon tells WW that decision is unrelated to the closure the Bagelworks location.
Gordon says he had been trying to renegotiate a new lease for four months. The owner of the property eventually made them a "stupid offer" that would have raised their rent "considerably for a short amount of time," and Gordon determined it wasn't worth it to renew.
Kenny and Zuke's landlord, Brent Douglas, could not be reached for comment.
Gordon says the business will move its bakery operation into its downtown delicatessen at 1038 SW Harvey Milk St. and incorporate "almost all" of its staff.
"There are a lot of benefits to it," Gordon says. "It will be a little tighter over there, but that may be a good thing in terms of labor. It'll be a lot easier than under current system, which involves a lot of traveling around. Now, it'll all come out of one place."
Kenny and Zuke's location at Portland International Airport will also remain open.