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Expectations were high when Scott DeGraff opened Junk and Liquid Sky in December 2008. The “beachfront” Base Village operations failed to live up to expectations and were seized this week.
The financial challenges faced by Junk and Liquid Sky owner Scott DeGraff hardly come as a surprise to people familiar with operations of the now-shuttered businesses located in the heart of Base Village. The restaurant and bar were placed in receivership last week after Related WestPac (as Base Village Owner LLC) filed an eviction action against DeGraff in Ninth Judicial District Court.
“I think conceptually it perhaps didn't fit the market,” said Jeffrey Klein, who operates The Office on the Snowmass Village Mall and hopes to debut the Asian-inspired Buchi in the base area by December. Before opening last year, DeGraff had introduced the concept of a club that was more edgy, more Las Vegas in style than anything Snowmass had ever seen. The concept seemed to catch fire with those who felt that a velvet ropes-style nightclub might be just what the doctor ordered for a resort that grows quiet after dark.
But the promise of greatness was never fulfilled, certainly in part because of the economy. Yet locals, including two columnists for this newspaper, were frequently critical of the limited hours that the operations in the nearly 6,000 square feet of prime space were open, shutting many evenings by 8 p.m., just when local nightlife starts to get going. While the food and beverage received generally good reviews, Junk and Liquid Sky failed to live up to their lofty expectations.
Court documents allege DeGraff hasn't paid rent since the end of last ski season and that he's behind by more than $175,000 in rent and other fees. DeGraff is also well known among a coterie of local contractors and subs, who have filed liens against him for work completed but not paid for.
DeGraff is expected to appear in court Nov. 17 to answer the summons. DeGraff continues to operate the N9NE Restaurant in downtown Aspen.
Initially there were widespread concerns over an empty space in the heart of the newly developed tourist area.
“We're sad and disappointed to have this prime beachfront location be vacant,” said Aspen Skiing Co. spokesman Jeff Hanle. He also emphasized that Skico won't be operating it this year: “I don't foresee us picking up another two spaces” to run, especially since Skico has found success with Sneaky's, located just across the plaza from the now shuttered duo of hot spots.
Town Manager Russ Forrest is among those observers who believe the lights will be on in the expansive space this season.
“I'm optimistic there could be new ownership,” Forrest said, without revealing any additional details.
That's also the opinion of Mike Otte, whose Aspen-based financial firm, Otte and Cote, is handling the receivership.
“I think there are interested parties. Obviously I think Scott (DeGraff) would like to continue to operate it as well,” Otte added.
On Nov. 6, Otte had the unenviable task of changing the locks on the businesses, in addition to conducting interviews with those involved with the bar and restaurants and “developing data” about the operations. In his role as receiver, Otte also may have a say about who would be a viable new tenant.
“We're going to do the right and best thing in terms of what the options are. Ideally, we hope the location will be up and running in the very near future,” Otte said. “I haven't talked to anybody who doesn't want to see something happening there. It's just a question of who and what. Exactly the same or something different?”
Because of a pending suit, Base Village Owner LLC is careful about commenting on the situation. But spokesman Steve Alldredge did allow: “In general, Related WestPac is very interested in the success of Base Village and having that property open.”
Skico's Hanle said he wanted to make sure that the public doesn't perceive this as a problem exclusive to either Snowmass or Base Village.
“I think restaurants are a particularly difficult business right now. We're happy someone came into Highlands,” to assume the lease of the former ZG Grill, Hanle said.
Madeleine Osberger's e-mail address is mosberger@snowmasssun.com
“I think conceptually it perhaps didn't fit the market,” said Jeffrey Klein, who operates The Office on the Snowmass Village Mall and hopes to debut the Asian-inspired Buchi in the base area by December. Before opening last year, DeGraff had introduced the concept of a club that was more edgy, more Las Vegas in style than anything Snowmass had ever seen. The concept seemed to catch fire with those who felt that a velvet ropes-style nightclub might be just what the doctor ordered for a resort that grows quiet after dark.
But the promise of greatness was never fulfilled, certainly in part because of the economy. Yet locals, including two columnists for this newspaper, were frequently critical of the limited hours that the operations in the nearly 6,000 square feet of prime space were open, shutting many evenings by 8 p.m., just when local nightlife starts to get going. While the food and beverage received generally good reviews, Junk and Liquid Sky failed to live up to their lofty expectations.
Court documents allege DeGraff hasn't paid rent since the end of last ski season and that he's behind by more than $175,000 in rent and other fees. DeGraff is also well known among a coterie of local contractors and subs, who have filed liens against him for work completed but not paid for.
DeGraff is expected to appear in court Nov. 17 to answer the summons. DeGraff continues to operate the N9NE Restaurant in downtown Aspen.
Initially there were widespread concerns over an empty space in the heart of the newly developed tourist area.
“We're sad and disappointed to have this prime beachfront location be vacant,” said Aspen Skiing Co. spokesman Jeff Hanle. He also emphasized that Skico won't be operating it this year: “I don't foresee us picking up another two spaces” to run, especially since Skico has found success with Sneaky's, located just across the plaza from the now shuttered duo of hot spots.
Town Manager Russ Forrest is among those observers who believe the lights will be on in the expansive space this season.
“I'm optimistic there could be new ownership,” Forrest said, without revealing any additional details.
That's also the opinion of Mike Otte, whose Aspen-based financial firm, Otte and Cote, is handling the receivership.
“I think there are interested parties. Obviously I think Scott (DeGraff) would like to continue to operate it as well,” Otte added.
On Nov. 6, Otte had the unenviable task of changing the locks on the businesses, in addition to conducting interviews with those involved with the bar and restaurants and “developing data” about the operations. In his role as receiver, Otte also may have a say about who would be a viable new tenant.
“We're going to do the right and best thing in terms of what the options are. Ideally, we hope the location will be up and running in the very near future,” Otte said. “I haven't talked to anybody who doesn't want to see something happening there. It's just a question of who and what. Exactly the same or something different?”
Because of a pending suit, Base Village Owner LLC is careful about commenting on the situation. But spokesman Steve Alldredge did allow: “In general, Related WestPac is very interested in the success of Base Village and having that property open.”
Skico's Hanle said he wanted to make sure that the public doesn't perceive this as a problem exclusive to either Snowmass or Base Village.
“I think restaurants are a particularly difficult business right now. We're happy someone came into Highlands,” to assume the lease of the former ZG Grill, Hanle said.
Madeleine Osberger's e-mail address is mosberger@snowmasssun.com
