KGW: Landlords sue Shari’s for millions in unpaid rent after chain shutters Oregon locations

PORTLAND, Ore. (KGW) -- Roughly 15 different landlord companies across Oregon have now filed lawsuits against Shari's Restaurants for failing to pay rent before the chain closed its doors.

Shari’s Restaurants, the beloved Pacific Northwest chain of family-style cafes that closed this fall, owes millions of dollars to landlords around the state, according to court filings.

The company abruptly closed all of its Oregon locations in October after facing mounting financial problems and unpaid bills.

“It was a great place to stop and get a good warm meal and some pie," said Marianne Doyle, a longtime customer.

Roughly 15 different landlord companies across the state have now filed lawsuits against Shari's for failing to pay rent before the chain closed its doors. 

Of the lawsuits KGW reviewed, landlord companies claim Shari's owes close to $4 million in overdue rent, late fees, and future rent payments that are promised through lease agreements.

"It was just dragged out to the very end," said Deb Melina in a previous interview with KGW. "I mean, you could read the writing on the wall, we knew something was coming."

The landlord lawsuits are tied to Shari's locations all over the state, stretching from Beaverton to Corvallis, Keizer, Bend, Oregon City and many other areas.

A Multnomah County judge found Shari's in default for $45,240 of past-due rent at a Troutdale location. The judge said Shari’s also owes $2.22 million in future rent payments through 2036, per the company’s lease agreement.

A letter from the landlord of a Grants Pass Shari’s said the restaurant chain stopped making payments in June, racking up three months of unpaid rent in the months to follow.

The landlord of a Shari's in Springfield, Oregon attached a photo of the restaurant’s closing notice posted on its doors, saying the landlord is terminating the lease and reentering the building, but Shari’s is still responsible for its payments.

While unpaid rent makes up most of the roughly $4 million in outstanding payments alleged through the lawsuits, most landlords claimed that Shari's stopped paying rent at its locations this summer, racking up tens of thousands of dollars in unpaid rent at those locations.

KGW could not reach anyone representing Shari's for comment on Tuesday.

Additionally, as evidenced by repeated default judgments, the company may not be able to defend itself in court. Law firm Miller Nash filed a suit against Shari's in October, claiming Shari's didn't pay them roughly $390,0000 for its legal work. A judge ruled in the firm's favor by default after Shari's didn't respond.