New details has surfaced regarding the popular Atlanta restaurant and bar, Bar One, which is being leased by “Real Housewives of Atlanta” cast member Peter Thomas (husband of Cynthia Bailey).  STACKS Magazine got a bit of exclusive tea from Cynthia Bailey herself. But, Rodney Ho, of AJC, revealed new developments in the story that some may find interesting.

Back in late November 2013, Cynthia Bailey and I [Ms. Bels, publisher of STACKS Magazine] talked briefly about her business ventures and the status of Atlanta hot spot, Bar One. She explained that, although many rumors were swirling about the building being in foreclosure, the money issues were not due to Peter not paying their rent.

On the rumors surrounding the foreclosure of Bar One…

Oh, we are definitely having some issues with Bar One. It has nothing to do directly with Peter and I. Peter pays the rent for Bar One every month. But the landlord was not paying the bank. So there’s some issues going on. We pray that’s all going to be worked out in time. So just pray for us. We’re working it out. But again, we were doing what we was supposed to be doing. Life happens…

[READ: Exclusive: RHOA’s Cynthia Bailey Talks ‘Carry-On Baggage’, Bar One’s Foreclosure & Why You Must “Do Your Research” Before Starting A Business]

During our chat, she also insisted that Bar One is doing very well and that they were soon opening up a second location in Charlotte, NC.  We have yet to hear the second restaurant’s grand opening. So, I wonder if that is still in the works. If so, hopefully Peter will negotiate a better lease agreement with its landlord. Because according to the news that hit the net today, it looks like Atlanta’s location is up in financial shambles and could potentially close very soon.

Here’s what AJC is reporting:

 

His landlord, Eloshua Elliott and Showtime Cafe, filed a complaint in Fulton County superior court saying Thomas owes more than $100,000. The charges: “defendant breached a lease agreement by failing to pay rent and other fees including late fees, bank charges, real estate property taxes and unpaid utilities.”

 

The lawsuit said Thomas hasn’t paid his rent of $10,000 a month since March, 2013 through the end of the year. (Late fees are another $5,000.)

 

Elliott also separately filed a complaint against Thomas’ entertainment group for the property across the street at 670 Memorial Drive which houses the Bailey Agency, Bailey’s modeling and talent company. There, he owes more than $29,000, the complaint said.

According to Peter, however, the landlords lawsuit is frivolous and that he’s being caught in between a second landlord that hasn’t been paying his share of the lease to the bank.

Peter Thomas, in an exclusive interview this afternoon, said the problem is his primary landlord Showtime Cafe for the Bar One property. (Elliott is partial land owner.) Prior to March, he said they had been taking his money for a year and not passing it on to the bank First Fidelity for the mortgage they owe. He said Showtime is in foreclosure proceedings and according to Loopnet, the property was auctioned off in October, 2013 but does not say to whom (Thomas’ attorney recommended he not release the names of the owners of Showtime.)

 

Starting last March, he started placing his rental payments in escrow with his attorney until Showtime straightened out its issues with its bank.

 

“I’ve been caught in the middle of the crossfire,” Thomas said. In reality, he has no problem financially paying his rent.

 

Believe me. I’m confused too by the situation. I’ve asked one of our investigative guys to dig up the foreclosure paperwork and see what the heck happened and who actually owns the properties.

 

Cynthia Bailey moved into the new property Industry Space at 670 Memorial Drive and the lease began in June, 2013, at a rate of $2,700 a month, according to the complaint related to that property.

 

Thomas said he is paying the bank directly for Industry Space and not Elliott. “I don’t owe them anything,” he said. He said the bank has no issue with him and he’s annoyed the landlord Elliott has tried to kick him out twice. He noted he spent more than $120,000 last year improving what had been an empty garage space.

 

In the Bar One filing, his lease ended Dec. 31, 2013 and has not been extended. He said he had a five-year option and the lease is set up so since he did not get a notice saying his lease is over, it was automatically extended. So he has remained and operates the bar normally in the interim.

 

His lease, signed in late 2010, has an escalated rent schedule that started at $2,500 a month in early 2011, jumped to $5,000 later in 2011, then $7,500 a month in 2012 and a whopping $10,000 a month last year.

The plaintiff is hoping that a judge grants him an immediate eviction.

Ok…here’s some additional tea.  

Word is that their space across the street from Bar One, Industry Studios, didn’t quite live up to its standards for some of the tenants. As some of you know, the multi-use space also housed Derek Blanks Photography, The Bailey Agency School of Fashion, and Peter Thomas Entertainment. Well, an anonymous source stated that some of the tenants (eg. Derek Blanks Photography) is no longer there because of a “bunch of mess going on”.  I, personally, have not been to Industry Studios, so I can’t confirm if DBP is there or not. What does “mess” entails? I don’t know. 

Nevertheless, hopefully this is all just a misunderstanding or Peter Thomas is indeed being taken advantage of by this second mystery landlord.  Bar One is a nice spot and the food is very good. So it will be a slight detriment to the Atlanta nightlife if it has to close its doors.

WHAT ARE YOUR THOUGHTS?