Oak Room May Close On Heels of Lawsuit

Photo: Hannah Whitaker

Earlier this week it came to light that the owners of the Plaza Hotel had filed a $33.3 million lawsuit against Oak Room operator Eli Gindi; now the Times reports that Gindi (who had been paying $125,000 per month in rent till the Plaza agreed to reduce it to $50,000) has abandoned plans to turn the lagging restaurant into a steakhouse, has filed a 90-day notice of departure, and could close the Oak Room by July 31, though the hotel says it’s looking for a new operator. Fun fact: The brunch parties that angered Plaza higher-ups were raking in as much as $180,000 in an afternoon. But restaurateurs, don’t let this give you any ideas — this isn’t the first time disco brunches have been a restaurant’s kiss of death.

Oak Room Is Set to Close After Rent Fight With Plaza Hotel [NYT]