Sweet Lady Jane, a bakery loved by Angelenos and a celebrity clientele, six locations unexpectedly closed on New Year's Day, citing a lack of sales that prevented it from paying its “precious employees.”
But for some former workers at the dessert chain, the message rang hollow.
For nearly seven months, the companies behind Sweet Lady Jane have been embroiled in a class-action lawsuit brought by an employee who alleged wage theft, according to court documents reviewed by The Times. Employees also said the company suffered from poor management.
Blanca Juárez, who worked at the bakery for approximately two months in 2022, alleged that Sweet Lady Jane LLC and SLJ Wholesale LLC failed to compensate her for all hours worked, including overtime, as well as missed meal and rest periods, according to a complaint filed June 30 in Los Angeles County Superior Court.
“Defendants engaged in a pattern and practice of wage abuse against their hourly or non-exempt employees,” the lawsuit reads.
A note from the owners of Sweet Lady Jane informed customers that they had decided to close their business.
(Genaro Molina / Los Angeles Times)
Juarez also accused the bakery of failing to maintain accurate payroll records and failing to provide “reimbursement for necessary business-related expenses,” according to the lawsuit.
The lawsuit alleged that Sweet Lady Jane had the ability to pay but “deliberately, knowingly, and intentionally failed to do so” in an effort to “increase Defendants' profits.”
Lawyers for Juarez and Sweet Lady Jane did not respond to requests for comment.
In court documents, the bakery chain denied Juarez's allegations and called the complaint “unverified.” The lawyers wrote that Juárez and other employees who could join the lawsuit have been paid “all amounts earned to which they are entitled.”
In a court document filed Tuesday, attorneys said the companies intend to file for a state alternative to bankruptcy, which could allow creditors, including former employees, to try to recover what they are owed.
Some former workers have been offered severance packages, according to documents obtained by The Times. The documents say that if employees sign the agreement, they must agree not to join lawsuits “seeking additional amounts of money or participate in any collective, collective or representative action.”
The tables are stacked against the front counter.
(Genaro Molina / Los Angeles Times)
On December 31, Sweet Lady Jane uploaded a post on Instagram announcing the closure of all stores. The post was deleted and the next day employees received the news that “the company was going to close permanently.”
“However, we want to tell you that we are very grateful for your loyal service and will pay you your regular salary until January 5,” said the email, which was obtained by The Times.
In a public statement, the company said it “did not make this decision lightly or quickly.”
“While the support and loyalty of our customers and employees has been strong, sales have not been high enough to continue doing business in the state of California, allowing us to meet our lease obligations and pay our customers. valued employees a decent wage,” he said. the email said. “We hope that the sweet memories of the joy we were able to share throughout Los Angeles remain with you, as they do with us.”
At the West Hollywood outpost of Sweet Lady Jane, opened in 1988 on Melrose Avenue, an old-fashioned sign hung on the door five days after the closing announcement: “We will be closed for renovations beginning Monday, September 18.” Customers were advised to shop at stores in Santa Monica, Calabasas or Manhattan Beach; the latter location had closed at the end of 2023.
Concerns about finances predated the closure of the entire company.
Phoebe Davidson, who worked from summer 2021 to summer 2022, said Sweet Lady Jane had been cutting its menu and raising prices.
When a 9-inch pie cost about $90, Davidson said, customers often rounded up to $100 for a tip. But the company raised the price to $100.
“Then people wouldn't tip us,” Davidson said. “And we started asking for raises and they said, 'Well, there's no money for raises.' How is that possible when we sell thousands of dollars worth of cake a day?
Two recent workers, who requested anonymity because they feared retaliation from the company and difficulties finding work, told The Times that the company had been undergoing changes before the closure. — such as expanding into new neighborhoods and temporarily closing popular sites for redevelopment.
The closure, both said, took them by surprise.
“I had the feeling there was a lot going on behind the scenes,” one said. “They closed Melrose. They closed Encino. “They tried to open Larchmont and it all happened at the same time.”
The abrupt closure of all stores left some customers (those who sought out the bakery's beloved Triple Berry Cake and other desserts included Taylor Swift, Blake Lively and Sophia Bush) scratching their heads.
Longtime customer Meagan Mayo said she was “totally shocked” to hear the news. The company had a strong presence in the film and television industry, said Mayo, who works as an assistant for a video streaming service.
“It's Los Angeles,” he said. “A lot of places, a lot of restaurants and a lot of bakeries just don't make it. “We will be sad for a while and someone else will come and take his place, but it is extremely unfortunate.”
Courtney Cowan, whose bakery Milk Jar Cookies announced its closure in the new year, reiterated how challenging it has been to run a food business in Los Angeles.
“It's never been an easy industry: food and specifically baking,” Cowan said. “It's labor-intensive, the hours are crazy, and there are a lot of moving parts.”
Syeda Fathima visited Sweet Lady Jane's Encino location on December 31, which would be its last day of operations.
She was impressed by how beautiful the store was, she said, adding that she talked to some cheerful employees about possible job openings.
Five days later, there were signs on the doors announcing the closure. Passersby looked out the windows, murmuring in disbelief.
The only thing left were empty seats and the shelves without cake.
Times staff writer Sarah Mosqueda contributed to this report.
