Khans Investment Group Sues Edgewood Bakery For Control After Investing.

[Coolyfett]

Big city business. Take it all Khan, take it all.

[I-10east]

Edgewood Bakery's 10-year-old son appeals to Shad Khan to 'let them stay'

Before the Jaguars pre-season opening game in August, Edgewood Bakery whipped up some specialty items they thought would please the team — and its owner, Shad Khan. Among the baked goods: a 9-foot sheet cake made in the image of the mega video screens the Jags had unveiled this season at EverBank Field and cookies decorated with Khan's iconic mustache.

Carol Rykalsky, who runs Edgewood Bakery with her husband, Tom, said her 10-year-old son Ryan was so excited, he wanted to help her hand-deliver the cake and cookies to Khan himself. Now, Ryan is trying to get Khan's attention for a different reason. With the question of who legally owns Edgewood Bakery the subject of pending litigation between the Rykalskys and Khan— who invested in the Rykalskys' U.S. Culinary business and funded the purchase of the bakery — Ryan Rykalsky has sent a letter to the billionaire. In it, he thanks Khan for "helping my Mom and Dad," and appeals to the business mogul to let the family continue to run Edgewood Bakery.

"Please let them stay at Edgewood Bakery to make veggie muffins," the letter pleads. Carol Rykalsky said Thursday the court battle that has developed between her and her husband and Khan and his Stache Investments has taken a toll on her family. "We want this to continue to be a family-run bakery, not a corporate-run bakery," Rykalsky said.

The Rykalskys bought the bakery, which has been in business since 1947, to use as a base of operations for U.S. Culinary, which makes foods for schools in which the oil and fat are replaced with vegetable puree. Khan released a statement on Dec. 12 through his spokesman, Jim Woodcock, that said, in part: "Mr. Rykalsky and his associates claim that they are the majority owners of the bakery and over the past several weeks have rejected Stache's claim that it is the rightful majority owner, despite clear evidence supporting Stache's position."
Woodcock was not immediately available for comment on Friday.

Stache Investments has asked that the Rykalskys and their employees vacate the Edgewood Bakery. The Rykalskys claim Khan's representatives have also seized the ingredients and equipment they need to make the U.S Culinary products — veggie-packed baked goods — that they sell to school districts around the country.

http://www.bizjournals.com/jacksonville/news/2014/12/12/edgewood-bakerys-10-year-old-son-appeals-to-shad.html

[bill]

The Rykalskys are in the wrong so the go all Cowford and have their kid" write a letter? So why don't real investors come to Jax? See 10 year olds business appeal. idiotic

[Noone]

There's more to come regarding Khan and his investments in Jacksonville.  Stay tuned.

I see one big ol "investment" is currently floating downtown.

Tour one ship as you look at another. Shipyards III

An IBM (International Bubba Meeting) Recomendation

Visit Jacksonville!

[KenFSU]

Edgewood Bakery's 10-year-old son appeals to Shad Khan to 'let them stay'

Before the Jaguars pre-season opening game in August, Edgewood Bakery whipped up some specialty items they thought would please the team — and its owner, Shad Khan. Among the baked goods: a 9-foot sheet cake made in the image of the mega video screens the Jags had unveiled this season at EverBank Field and cookies decorated with Khan's iconic mustache.

Carol Rykalsky, who runs Edgewood Bakery with her husband, Tom, said her 10-year-old son Ryan was so excited, he wanted to help her hand-deliver the cake and cookies to Khan himself. Now, Ryan is trying to get Khan's attention for a different reason. With the question of who legally owns Edgewood Bakery the subject of pending litigation between the Rykalskys and Khan— who invested in the Rykalskys' U.S. Culinary business and funded the purchase of the bakery — Ryan Rykalsky has sent a letter to the billionaire. In it, he thanks Khan for "helping my Mom and Dad," and appeals to the business mogul to let the family continue to run Edgewood Bakery.

"Please let them stay at Edgewood Bakery to make veggie muffins," the letter pleads. Carol Rykalsky said Thursday the court battle that has developed between her and her husband and Khan and his Stache Investments has taken a toll on her family. "We want this to continue to be a family-run bakery, not a corporate-run bakery," Rykalsky said.

The Rykalskys bought the bakery, which has been in business since 1947, to use as a base of operations for U.S. Culinary, which makes foods for schools in which the oil and fat are replaced with vegetable puree. Khan released a statement on Dec. 12 through his spokesman, Jim Woodcock, that said, in part: "Mr. Rykalsky and his associates claim that they are the majority owners of the bakery and over the past several weeks have rejected Stache's claim that it is the rightful majority owner, despite clear evidence supporting Stache's position."
Woodcock was not immediately available for comment on Friday.

Stache Investments has asked that the Rykalskys and their employees vacate the Edgewood Bakery. The Rykalskys claim Khan's representatives have also seized the ingredients and equipment they need to make the U.S Culinary products — veggie-packed baked goods — that they sell to school districts around the country.

http://www.bizjournals.com/jacksonville/news/2014/12/12/edgewood-bakerys-10-year-old-son-appeals-to-shad.html

Who does this?

What an absolute embarrassment.

If I was Khan, I'm not sure I'd feel comfortable being in business with people who acted so unprofessionally either.

[tufsu1]

If I was Khan, I'm not sure I'd feel comfortable being in business with people who acted so unprofessionally either.

clearly little mom & pop entrepreneurs should not try to compete with billionaires.

http://www.bizjournals.com/jacksonville/news/2014/12/15/tom-rykalsky-said-no-paperwork-signed-in-edgewood.html?ana=e_du_pub&s=article_du&ed=2014-12-15&u=PkDtvIYnFbocEtc+KLgHAA0d9bdf5c&t=1418674696

[Crabernacle]

With that amount of money being invested, this "Mom and Pop" operation thought it would be a good idea to have no written contract whatsoever? Unless I'm missing something this seems to be beyond a boneheaded move.

[Crabernacle]

I'm with you Apache. That Bizjournal article that Tufsu1 linked is 3 pages of seemingly unsubstantiated claims made by the bakery's new owners. They keep referencing hand-shake deals and email correspondence, yet can't be bothered to trot out a single piece of evidence for the story?

He and his wife Carol say they never signed any official paperwork with Khan and Stache Investments, setting down terms of ownership and/or an equity agreement when the billionaire invested in the couple's U.S. Culinary & Beverage business. "I guess you could say that was our fault," said Rykalsky.

I'm just at a loss here. My mind boggles as to how anyone thought that was a solid course of action. Of course then you get the snide comment on what he's learned from this whole ordeal:

"Make sure you have a very good attorney, a very good accountant and make sure you have everything documented in writing,"

If someone loans you almost a million dollars make sure to get it in writing? Hot take. Granted we haven't seen the entire story yet, but right now I feel like Khan is being unfairly vilified by a couple of entrepreneurs with shoddy business practices.   

[Noone]

clearly little mom & pop entrepreneurs should not try to compete with billionaires.

Does anyone else feel sorry for the Baltimore guys? 2014-412.

[mtraininjax]

Maybe a billionaire getting entrenched with the local community isn't all that cracked up like it's meant to be in alot of ways; I prefer him doing things on his own (like the Shipyards) because him getting intertwined in contractual matters with local owners isn't looking good so far.

If this matter goes to court, this is basically a no win situation for Khan in the eyes of much of the local citizens, even if he maybe in the right with the contract. If he wins, he is the evil wealthy megalomaniac that took over a long time establishment; If he loses, his credibility will now come into question. I'm saying this as a person that appreciates him being the owner of the Jags.

You don't know anything and its obvious with these posts. Even the owner admits he did everything with a handshake, what a moron! You think the city will give him the shipyards on a handshake? ROTFLMFAO!

The owner of Edgewood Bakery admits he did not get anything in writing, so before you shoot your mouth off, wait for the fact to come out! 5 billion compared to a peasant, good luck! LOL!

[I-10east]

^^^You waited ten days after the fact to spout of that garbage? You missed the point that I was making; Not everyone is a savvy business minded person, and many in the GP will think on emotion (notice that I said even if Khan is right in the contract). I'm seeing alot of these 'Khan is shysty' type posts already on local sites. Mr "if CSX leaves Jax, let it be" yeah, that would really be awesome for the local community, but I don't know anything....

[vicupstate]

While it is incredulous that the Rykalsky's didn't get anything in writing, do we know if Khan got anything in writing?  If not, how much MORE telling is that?

[Rob68]

How much was the company worth just prior to the investment? Are they running the place as a bakery well? How much of the place is dedicated to the muffin idea? Was it going to continue as a bakery or become a veggie muffin company? Seems fair that if someone gives you that kind of money they would have a pretty big say so on how things are ran. If they cant run a bakery successfully  how could they run a factory of sorts? Maybe the idea of the muffins took them away from the idea of being a great bakery first.

[mtraininjax]

Are they running the place as a bakery well? How much of the place is dedicated to the muffin idea?

As tight lipped as Khan is and has been, who really knows the deal with the Bakery people, maybe it was a handshake, maybe it was done on a napkin, who is to say, Khan is not saying anything. I know he does not want a non-performing asset, so there has to be an issue with repayment of his funds as the #1 issue here.

I don't know that the owners could make enough muffins to pay off the note and interest. We shall see when the Judge starts the process in January.

[vicupstate]

BTW, has anyone on here actually tasted these muffins? If so, what did you think?