Italian restaurant in Burns Harbor closes its doors as ownership dispute lands in court

Chicago Tribune

a day ago

The Pizza Terra restaurant in Burns Harbor suddenly closed its doors Monday as all of the interior equipment was removed as part of an ownership dispute between the business partners.
Rolando 'Roly' Martinez filed a lawsuit Friday in Porter Superior Court against Jeremy Branshaw, his business partner, and Courtney R. Eaton, who was an employee.
On Monday, all of the interior kitchen equipment, along with the tables and chairs, were removed from the restaurant's interior. A sign on the door said the eatery was closed for remodeling.
'There isn't the equipment to run a restaurant because all of it has been moved to a safe place,' said Patrick McEeun, a Portage attorney representing Martinez. 'Mr. Branshaw decided to slander Mr. Martinez, and he wasn't having it.'
Branshaw refused to sign for any financial responsibility for the equipment, McEeun said. When the leasing company learned of the shareholder dispute, they advised Martinez that because he was guaranteeing the debt, he was authorized to remove the equipment to a safe and insured location, McEeun said.
Martinez alleges in the lawsuit that Branshaw and Eaton conspired to 'defame' him and freeze him out of the operation.
McEuen has asked the court to appoint a receiver to manage the assets of JGR Restaurant, Inc., which does business as 'Pizza Terra.'
Martinez is a 50% owner in the business and was involved with the Gastro 49 Pub & Eatery in Chesterton and Big Time Burgers and Brews in Portage.
'I have spent almost two decades building a reputation for successful restaurants. I have never been burned by an investor or a partner,' Martinez said. 'I still believe in the Pizza Terra brand, and we hope to reopen with a new chef.'
JGR Restaurant, Inc. formed in May 2022 to operate the Italian restaurant, which was located in a renovated service station at the corner of Ind. 149 and U.S. 20.
Branshaw, who was working as a chef at Lucrezia Cafe in Chesterton, had agreed to be the head chef at Pizza Terra.
While Branshaw was a partner, he invested a limited amount of money. Martinez stated that he obtained loans and oversaw the conversion of the service station building into a restaurant, which opened its doors in March 2023, the lawsuit says.
There were problems from the start as Branshaw demanded that he be paid a $100,000 salary.
Branshaw is also alleged in November 2024 to have filed a document that called for him to be listed as the 'governing person' for JGR with the Indiana Secretary of State's office. Branshaw is alleged to have fraudulently done this without Martinez's knowledge, the lawsuit says.
Martinez was the subject of slanderous remarks that Branshaw made to employees, and Eaton joined in this activity, the lawsuit says.
The situation came to a head earlier this year when Branshaw claimed that a person who had lent money to help start the business wasn't repaid. Martinez said the man had been paid the $5,000 he was owed.
There was a showdown between Branshaw and Martinez when they met with the accountant in April.
During that meeting, Martinez was served with a letter by Branshaw's attorney that claimed 'there has been alarming irregularities in the financial management, including improper payroll handling and cash payments to employees aimed at avoiding tax reporting and overtime compensation.'
'These actions not only compromise the financial integrity of Pizza Terra, but also place significant personal, financial, and legal burdens on Mr. Branshaw,' said the letter signed by Daniel Timm, the counsel for Branshaw.
Timm, in his letter to Martinez in April, said that if the problems with payroll and business practices were not rectified, that Branshaw was 'prepared to initiate litigation immediately.'
'Our aim is to resolve these issues amicably; however, we are prepared to take further legal actions to protect Mr. Branshaw's interests and those of Pizza Terra.' Timm's letter said.
The Post-Tribune left a message for Timm seeking additional comment Tuesday.
Branshaw also made an offer to purchase the 50% share of the Pizza Terra business, the letter said.
Martinez claims that Branshaw's offer was 'an extortion attempt' to gain control of the business because Branshaw was fully aware of the restaurant's financial operation, the lawsuit says.