Cigar lounge and restaurant Brun, which previously occupied 203 N. Lombardy St., has been sued by the landlord for unpaid rent. (Jack Jacobs photo)
A short-lived cigar lounge that recently departed a Fan storefront is being sued for unpaid rent and damages by the property’s owner.
Brun was hit last month with a lawsuit seeking roughly $315,000 in the wake of the cigar lounge’s exit from 203 N. Lombardy St., which is owned by an LLC tied to Steve Gratz.
The landlord’s complaint alleges that Brun breached their contract when the lounge, which included a restaurant, failed to pay rent and damaged the property. Of the total compensation sought, about $285,000 is unpaid rent and $30,000 is sought for damages to the property.
Among the damages claimed are “heavy cigar and cigarette smoke smell” and floors that “required a steam cleaner because the grease was so thick,” as well as missing kitchen equipment and other claims.
Brun owner Charles Wilson disputed the accusations in an interview Monday.
“In general, we’re disappointed in where this has escalated to such a point that (Gratz) has filed a suit, and even more so the claims he makes in the suit. All the claims in the suit are baseless,” Wilson said. “We will vigorously defend ourselves from what we believe are false claims.”
Gratz declined to comment for this story when reached by email Monday.
Brun’s five-year lease for the Lombardy Street space started in October 2021. Gratz alleges that Brun paid half its monthly rent in January 2023 and then stopped paying rent altogether after that.
The parties agreed to a base rent of $6,800 per month with a 3 percent annual increase, as well as about $650 a month for other costs like taxes and insurance, according to the lease. In the complaint, the plaintiff said the total rent was reduced to $7,500 a month in the second year.
Wilson said an agreement was in place to facilitate rent payment and an early exit for Brun from the space by mid-April to clear the way for a new tenant to occupy the space.
“We came to an agreement regarding payment and transitioning from the space to a new tenant he had lined up,” Wilson said. “We were operating under that, even down to the level of cleanliness that he wanted for the space.”
The complaint alleges that the space wasn’t returned as a clean shell as was required in the lease, and that the HVAC units weren’t serviced or cleaned. The filing claims “grease, dirt and trash were extensive throughout the restaurant,” and that Brun’s smoke ventilation system “was either not working or not adequate for the space.”
“We had a definitive date he asked us to be out of the space in order to make room for his next tenant. We met that (condition) and we were out of the space and we left it in a condition that was in good order,” Wilson said.
The lease specified that the space would be utilized for a whiskey and cigar lounge with restaurant and bar.
Charles Wilson, left, and Adam Evans. (BizSense file)
Wilson and Brun co-owner Adam Evans are defendants in the case along with limited liability company GWBG, which does business as Brun.
Wilson said Brun had lined up legal representation but declined to identify his attorney. He said he expected his side would file a response but said there wasn’t a timeline yet on making that move.
Gratz is represented by Chesterfield-based attorney Scott Simmons.
Brun opened in March 2022 in the 3,200-square-foot space, which previously had been home to sandwich joint Poor Boys of RVA, among other eateries over the years.
Brun could potentially reopen in a new brick-and-mortar location, though Wilson said a tentative timeline of a summer reopening could be pushed back into next year. Since it left the Fan, Brun has shifted to operate as an events organizer that works with brands and restaurants to put on ticketed social events.
“We want to leverage our influence in a way and support other small business owners. I think that’s where our sweet spot is, where we don’t have to worry about labor and overhead,” Wilson said. “I’d say we’re an experience-management company now.”
He said the idea is that in doing events, Brun will stay relevant and maintain connections with customers in a way that will help the company kickstart its next chapter.
“When we decide to make a decision, there’s momentum that we already have,” Wilson said. “We’re trying to be smart about how we pivot.”
Prior to Poor Boys, the Lombardy Street space had been occupied by restaurants such as Flora and Balliceaux, the latter a bar and restaurant that was owned by Gratz.
Cigar lounge and restaurant Brun, which previously occupied 203 N. Lombardy St., has been sued by the landlord for unpaid rent. (Jack Jacobs photo)
A short-lived cigar lounge that recently departed a Fan storefront is being sued for unpaid rent and damages by the property’s owner.
Brun was hit last month with a lawsuit seeking roughly $315,000 in the wake of the cigar lounge’s exit from 203 N. Lombardy St., which is owned by an LLC tied to Steve Gratz.
The landlord’s complaint alleges that Brun breached their contract when the lounge, which included a restaurant, failed to pay rent and damaged the property. Of the total compensation sought, about $285,000 is unpaid rent and $30,000 is sought for damages to the property.
Among the damages claimed are “heavy cigar and cigarette smoke smell” and floors that “required a steam cleaner because the grease was so thick,” as well as missing kitchen equipment and other claims.
Brun owner Charles Wilson disputed the accusations in an interview Monday.
“In general, we’re disappointed in where this has escalated to such a point that (Gratz) has filed a suit, and even more so the claims he makes in the suit. All the claims in the suit are baseless,” Wilson said. “We will vigorously defend ourselves from what we believe are false claims.”
Gratz declined to comment for this story when reached by email Monday.
Brun’s five-year lease for the Lombardy Street space started in October 2021. Gratz alleges that Brun paid half its monthly rent in January 2023 and then stopped paying rent altogether after that.
The parties agreed to a base rent of $6,800 per month with a 3 percent annual increase, as well as about $650 a month for other costs like taxes and insurance, according to the lease. In the complaint, the plaintiff said the total rent was reduced to $7,500 a month in the second year.
Wilson said an agreement was in place to facilitate rent payment and an early exit for Brun from the space by mid-April to clear the way for a new tenant to occupy the space.
“We came to an agreement regarding payment and transitioning from the space to a new tenant he had lined up,” Wilson said. “We were operating under that, even down to the level of cleanliness that he wanted for the space.”
The complaint alleges that the space wasn’t returned as a clean shell as was required in the lease, and that the HVAC units weren’t serviced or cleaned. The filing claims “grease, dirt and trash were extensive throughout the restaurant,” and that Brun’s smoke ventilation system “was either not working or not adequate for the space.”
“We had a definitive date he asked us to be out of the space in order to make room for his next tenant. We met that (condition) and we were out of the space and we left it in a condition that was in good order,” Wilson said.
The lease specified that the space would be utilized for a whiskey and cigar lounge with restaurant and bar.
Charles Wilson, left, and Adam Evans. (BizSense file)
Wilson and Brun co-owner Adam Evans are defendants in the case along with limited liability company GWBG, which does business as Brun.
Wilson said Brun had lined up legal representation but declined to identify his attorney. He said he expected his side would file a response but said there wasn’t a timeline yet on making that move.
Gratz is represented by Chesterfield-based attorney Scott Simmons.
Brun opened in March 2022 in the 3,200-square-foot space, which previously had been home to sandwich joint Poor Boys of RVA, among other eateries over the years.
Brun could potentially reopen in a new brick-and-mortar location, though Wilson said a tentative timeline of a summer reopening could be pushed back into next year. Since it left the Fan, Brun has shifted to operate as an events organizer that works with brands and restaurants to put on ticketed social events.
“We want to leverage our influence in a way and support other small business owners. I think that’s where our sweet spot is, where we don’t have to worry about labor and overhead,” Wilson said. “I’d say we’re an experience-management company now.”
He said the idea is that in doing events, Brun will stay relevant and maintain connections with customers in a way that will help the company kickstart its next chapter.
“When we decide to make a decision, there’s momentum that we already have,” Wilson said. “We’re trying to be smart about how we pivot.”
Prior to Poor Boys, the Lombardy Street space had been occupied by restaurants such as Flora and Balliceaux, the latter a bar and restaurant that was owned by Gratz.
Wait, how much was rent?!! 😯
Ashley – Although the article states 3,200 square feet, the Thalhimer listing has the property as 3,600 square feet. Commercial Retail space in the Richmond market averages around annual rent of $21-24 per square foot, which would put monthly rent around $6,300-$7,200. This might seem shocking to you, but this pretty average rent for that type of space.
I think what Ashley is asking is how could they owe $285k in backed rent if rent is ~7k / month, but they opened in Oct 2021 and stopped paying rent in January. That equates to ~40 months of rent. Unless there’s something I’m missing.
in theses suits they usually want the full unpaid rent going to the end of the contract. So not only the time passed, but the time until contract end.
This is July, so I’m guessing his next tenet fell through if the place is still empty. If it fell through because they didn’t like the condition of the place, maybe there should have been a convo had sometime between January and April.
Note to future self: Don’t rent my space to a Cigar Lounge and not expect it to smell like smoke…. Regardless of the mitigations…
Right!?! A cigar lounge smelled like smoke? That’s shocking!
Man that spot has been cursed of late. Bogarts had a 30 year run, Balliceaux had a moment but since then …..
This is an unfortunate situation and for anything to survive here the business will need to draw on mostly people in the immediate Fan area (especially VCU students). That is how Bogart’s and Balliceaux survived and utilized such a large space with a unique layout. Transit options and parking are limited and further confined by the Fan District parking zones, as well.
Exactly. Something like Joes Inn east could be a winner. The last 2 concepts were destined to fail.
but boy did I want the cajun spot to make it – their food was pretty good (as an aside Richmond has needed a good cajun spot for decades – Lady N’awlins wasn’t even a good attempt)
But their service was terrible. We went once and waited 40 mins for a table, was seated, and someone took our drink orders for soda, cocktails and wine. 35 minutes later no drinks and no silverware and not a single staffer stopped. We stood up and left. We went back and the service was slightly better but the food was terrible (and they closed soon after).
Something like New York Deli might work: to pay that rent you need to serve breakfast, lunch, dinner, and then drinks until 1 or 2 in the morning. You have to use that space. Brun was only open about four or five days a week for dinner and drinks, and a cigar bar is a niche concept that keeps as many people away as it attracts.
I thought Balliceaux was the bee’s knees! Definitely gave me an upscale and hip vibe that you typically see in larger cities. Very unique space too.
concept was nice. Food wasn’t good. That killed it
I loved Balliceaux too — and I also liked the food, though they changed it a bit too much. Not fair that one crazy artist type’s bad decision could be allowed to destroy the place.
Next door to Pierce’s Market of old?
Those flithy smokers.
Love the Cat head! I never really understood the Cigar Lounge. It is clearly a “Men’s Club concept, which I kinda like, but I guess the cigars are to keep the women self-selecting out??? But I HATE cigars. I used to love smoking, but only cigarettes and sometimes pipes. But I don’t think I am their target audience — it always seems that they want people who are at least fronting that they are Big Time. I remember when I first saw the concept going in — there was a very expensive build-out going on in Manhattan somewhere in maybe… Read more »