BREAKING NEWS: MAJOR CHANGES AT NICK LACHEY, NICKY HILTON & WILMER VALDERRAMA’S FOUR-MONTH-OLD CELEBRITY “COMPANY RESTAURANT”
Celebrity investor partners Nicky Hilton, Nick Lachey and Wilmer Valderrama will be shocked this morning to learn that their four-month-old Company American Bistro alongside the hot LAX nightclub inside the Luxor is “changing directions.” It comes hard on the heels of many news reports that owner Pure Management Group was hit last month with an IRS raid on its offices, its Pure and LAX nightclubs and also by the decision that the Rio resort-casino hotel took back the Lucky Strike Lanes they managed.
Problems initially began—as Luxe Life exclusively reported first—three weeks ago when Donald Trump “raided” the kitchen and hired chef David Varley to run his new upscale DJT restaurant in the Trump Tower condo-tower opening next weekend. Chef Marcel Vigneron who starred on the Top Chef TV show and pastry chef Ralph Perrazzo followed out the doors.
Now nightlife queen and TheCircuitLV.com colleague Xania Woodman is reporting this morning that the remaining executive chef Adam Sobel has called it quits too. Chef Adam Sobel has confirmed to Luxe Life, through a spokesman, that he handed in his notice and tonight (SAT) is his last night.
The chefs were told in a meeting by the owners that the restaurant was losing money and were nowhere close to the 300 covers a night to be profitable. “It was a demoralizing meeting,” I was told. “The restaurant was said to be bleeding money.
In addition, the Company sommelier, Michael Shearin and the front-of-house manager Lucas Rienans, who both worked together previously at the prestigious Guy Savoy restaurant in Caesars Palace have been hired away by real-estate mogul Trump for his new fine-dining destination restaurant. Chef Sobel says he’ll take a break from the current challenges of Strip dining before taking on his next assignment.
Luxe Life was told weeks ago that the menu and beverages rundown would be totally overhauled by a rum-company owner consultant to solve the problem of low-customer attendance. Luxe Life was also told that the LAX servers had to have dinner there on Tuesday nights to give the appearance of being packed and successful. Luxe Life decided not to report this information in order to give the Company officials, who were struggling to rectify their problems, a decent shot at success. But now the restaurant is closing we have no choice but to report the messy situation.
Now Company, which opened in mid-December with a huge celebrity party given by Nicky, Nick and DJ AM will apparently close tonight (SAT).
The decision was disclosed to shell-shocked staff at a special hurriedly-called meeting. For now Company will remain shuttered this week with the hope it can re-open with a totally new look, feel and menu by next Friday. It’s doubly complicated for the casino resort because simultaneously Luxor officials announced that their long-running Steakhouse would also close on Monday (MAR 24) for a four-month redecorating overhaul. Fortunately Kerry Simon’s Cathouse restaurant, which was closed down for one month—after its grand New Years Eve gala opening—because of a ceiling crack and floor slippage re-opened last night (FRI).
Xania’s Circuit report says her source told her that chef Sobel was informed by the Pure bosses that the “fine-dining unique-menu concept” would be scaled back. Pure Management Group still continues to run its Social House restaurant at Treasure Island and Dick’s Last Resort bar and eatery at the Excalibur. The LAX nightclub, with celebrity investors DJ AM and Christine Aguillera continues to be an incredible success story with jam-packed crowds.
A spokeperson for Company confirmed: “The closing is only temporary. We will reopen on Thursday. We are dark regularly Sunday and Monday, so (Company) will only close Tuesday and Wednesday to train new chefs and the staff with a new menu. We are looking forward to a new approachable, inviting menu. We are not rebranding Company.”
Luxe Life will continue to monitor this developing story—along with the ongoing IRS investigations into alleged cash skimming and unreported tip incomes. Earlier this week I was given specific information from a very reliable source that the Pure nightclub was in serious “for sale” negotiations to pay off a $70 million loan to a Los Angeles based hedge fund investment bank who advanced the funds for the construction of Company and LAX at the Luxor. A spokesman for Pure commented: “There is absolutely not one word of truth to these rumors.”