Wuollet’s woes continue as the landlord for its south Minneapolis bakery has sued for eviction over unpaid rent.
Landlord seeks to evict Wuollet bakery in southwest Minneapolis
It’s been a bad year for the classic Twin Cities bakery chain as it has closed several other outlets and has been sued by its lender.
It’s the latest blow to the prominent bakery chain, which between May and September closed stores in Wayzata, Hastings and downtown Minneapolis amid eviction proceedings. Last month, Wuollet also closed its Grand Avenue outlet in St. Paul.
And in October, a Chicago-based bank sued Wuollet companies and their owner, Eric Shogren, after they defaulted on two loans totaling over $1.3 million.
Wuollet’s bakery at 3608 W. 50th Street in Minneapolis was delinquent on $151,805 in rent payments as of Oct. 31, according to a suit filed Friday in Hennepin County District Court by its landlord, Wuollet West 50th LLC of Buffalo, Minn.
The bakery’s lease expired in August 2023, and since then Wuollet has occupied the building on a month-to-month basis. In September, the landlord notified Wuollet it was terminating the bakery’s tenancy effective Oct. 31.
However, “the tenant has failed to vacate the premises and surrender possession” to the landlord, the suit claims.
Shogren said he and his partners are in the process of recapitalizing the businesss.
“This restructuring to reorganize includes making changes to some of our Wuollet bakery business locations but does not mean we’re going out of business,” Shogren said.
The lease agreement for the 50th St. location will cease at the end of the year, and Wuollet’s will not extend or contest it, he said. However, “we pledge to continue doing business” in the Edina area.
In addition to the southwest Minneapolis-Edina store, he said, the business plans to work on “reconfiguring the footprints” of other stores to build the business back up. It is exploring new spaces along Grand Avenue, for example.
Shogren built a major bakery and restaurant business in Russia before returning to his native Minnesota. He started buying neighborhood bakeries, including the 75-year-old Wuollet chain in 2019, Hans’ Bakery in Anoka, a Baker’s Wife in south Minneapolis and Grandma’s Bakery in White Bear Lake.
Shogren pledged to preserve the bakeries’ family-owned feel while also attracting the next generation of pastry consumers. But customers at multiple Shogren locations have complained that the quality of the baked goods has suffered since changes in ownership.
Shogren has refuted complaints about quality, saying patrons might instead be reacting to a different array of products than they were used to before he bought the bakeries.
The Robbinsdale and Uptown Minneapolis Wuollets, the Baker’s Wife and Hans’ Bakery are still open, he said.
In October, Byline Bank sued Shogren, several Wuollet-related businesses and Hans’ Bakery LLC and a Baker’s Wife LLC in Anoka County District Court. Byline filed another suit in Hennepin County the same day, naming Shogren, several Wuollet entities and a Baker’s Wife as defendants.
In Hennepin County, Byline Bank claims Shogren and his companies defaulted on a 2019 loan by failing to make monthly payments, now owing $718,332 plus interest. The bank wants a court judgment for the money and the right to seize collateral, including equipment and inventory.
In Anoka County, Byline Bank says Shogren defaulted and failed to make payments on a 2021 loan, owing $612,703, including interest. The bank wants a judgment and court permission to foreclose on a mortgage for the Hans’ Bakery property in Anoka.
Prices also increased statewide, with the median closing price last month in the Twin Cities at $375,000.