Neighborhood Bakery Files for Bankruptcy Protection

Three months after moving into its new Agoura Hills location, Stone Ground Bakery has filed for Chapter 11 bankruptcy protection.

Court records show that the European-style kosher bakery filed a petition with the U.S. Bankruptcy Court on Nov. 18.

In business since 2004, off Canwood Street in August after leaving its previous address at 5005 Kanan Rd. Its recent additions include a wood-fire pizza oven, a coffee bar, gelato from a local vendor and a more expansive dining area.

Stone Ground Bakery also supplies baked goods to nearby school districts, grocery chains and retail stores. 

“We will continue to be open for business as usual, as we do some internal restructuring," said owner when reached by phone. He declined to provide additional details due to pending litigation.

In October, public records show that the Superior Court of California appointed a receiver, an impartial individual appointed by the courts to oversee or run a business, to protect the rights and property of one party or stakeholder.

That was in response to Franke’s longtime business partner Gregory Yulish’s motion “to protect his property and rights” after Franke locked him out of the business and terminated him without warning or good cause, according to Yulish.

In his complaint, Yulish claimed that Franke has “violated health code regulations, filed false tax returns and engaged in highly questionable activities.”

Yulish, who has a 40 percent stake in the bakery, stated he was optimistic about the outcome of the proceedings. “We hope the issue/s will be resolved soon,” he stated. "We all want the business to continue and flourish.”

The receiver was no longer in place after the bakery filed for bankruptcy protection.

Stone Ground Bakery is best known for its traditionally made challah, the bakery’s signature Jewish bread, which is braided by hand on the site.

Watch Patch for updates on this developing story.