Six Clark County Subway locations that closed abruptly this summer still look operational. Advertisements cover the windows. Furniture, ovens and counters sit inside untouched. But on the heels of the franchise owner’s bankruptcy, one Vancouver landlord says the stores have been abandoned.
The restaurants, all formerly owned and operated by Lake Oswego, Ore.-based CapTen Enterprises, closed unexpectedly in August.
CapTen owned 23 Subway franchises in Oregon and Washington, from Bend, Ore., to Vancouver. They all closed and the company’s franchise agreement with Subway was terminated, according to multiple media reports.
Other Subway restaurants in Clark County, owned by other franchisees, remain open.
CapTen’s president, Ann Bell, told KPTV-TV her company’s trouble began when her bank account was hacked. Fraudsters stole all the money in her bank account and she ultimately couldn’t pay her food supplier, US Foods. Without support from the national company — because its ownership was in flux — she had to close, Bell told KPTV. (Roark Capital acquired Subway in April.)
Companies associated with Vancouver property management firm Al Angelo Co. filed suit against national brand Subway and CapTen in recent weeks. Al Angelo Co. manages properties at Heritage Place on West Eighth Street and Four Seasons Place on Northeast 28th Street where CapTen leased space.
Subway set up shop at both locations in 2001 and CapTen took ownership sometime afterward.
The court complaint alleges neither Subway nor CapTen paid rent in July, August, September and October in either location and failed to pay rent in June as well at Heritage Place. The complaints also allege the properties have been abandoned.
Court records show CapTen Enterprises filed for Chapter 7 bankruptcy in September, which usually leads to a liquidation of a company’s assets.
Seven complaints about unpaid wages against CapTen and Subway have been filed with the Washington Department of Labor & Industries, according to a department spokesperson. Three weren’t accepted because employees didn’t respond to investigators’ inquiries. One complaint was not accepted because it was a duplicate and three were not accepted because the business filed for bankruptcy.
The department “does not have jurisdiction over a firm that has filed bankruptcy, and we are unable to pursue any wage complaints filed against the employer,” said agency spokesman Jeff Mayor.
A representative for Subway didn’t respond to repeated inquiries about what is expected to happen to CapTen’s franchise locations.
CapTen’s Vancouver locations were:
- 406 W. Eighth St.
- 8902 N.E. Fifth Ave., Suite 111
- 6715 N.E. 63rd St., Suite B108
- 2265 N.E. Andresen Road, Suite 101
- 13521 S.E. Third Way, No. 100
- 11409 N.E. 28th St. Bldg. J, Suite 1
