Why Not Let The Buyer Open The Laytonville Grocery Store?

Last week, I only had time to write a short version of the ongoing saga of the closed Geiger’s grocery store.

Here’s an updated report with more detail.

Just a few days ago, I was optimistic that recent developments indicated legal wrinkles in the mysterious sales agreement between the former owner of Geiger’s Long Valley Market, Michael Braught, and the new owner, the Faizan Corporation, based in Ukiah, had apparently been ironed out.

The sales agreement was reached late last summer. The agreement transferred ownership of the property that included the store facility, parking lot, and adjacent storage buildings. It should be noted the transaction did not include transfer of a separate legal entity, a four-partner LLC that operated the grocery business pursuant to 10-year operating lease.

Braught and his family re-located to Montana in 2018.

The 10-year operating lease was jointly owned by four partners, who all have equal 25 percent shares in the lease.

In an interview with a Montana business blog that occurred in early September of 2023, Braught explained the transaction: “Last week, 30 days ago (end of July 2023), we sold the building and property in Laytonville, the grocery store and property … Two years ago, Shanna and I and one of the four owners of the LLC, Mike Maciel and his wife, bought the [Superette] building and property in Hopland … So currently, Shanna and I are just 25 percent owners of the business in Laytonville, that’s all we have. We are 50 percent owners of the building and property and business in Hopland.”

Braught’s comment about being “just a 25 percent owner of the business” apparently is a reference to the 10-year lease that controls the operation of the actual Laytonville grocery business. In other words, there are two distinct business entities previously known as Geiger’s Long Valley Market:

The physical assets of the actual property, including the store facility, and a second entity, the operating lease LLC that controls the actual grocery business in the store. Coincidentally, subsequent to the purchase of the Hopland Superette in 2021, the Laytonville grocery operation began a slide into eventual nearly empty product shelves, almost no produce, and a meat and seafood market without much of either on display.

Of course, it all culminated with the store’s un-announced closure on November 1, 2023.

Ironically, in an April 2023 letter to the Laytonville community, Braught addressed the issue of rumors alleging that he was planning to sell Geiger’s. He wrote then, “Dear Community, There are few things we would like to address. First, Geiger’s Long Valley Market has operated this grocery store for decades. Geiger’s isn’t for sale and it isn’t going anywhere. Michael Braught and Shanna [Geiger] Braught have owned the land and building at 44951 Hwy 101 Laytonville separately for 26 years purchased from Bernie and Judy Geiger. Geiger’s Long Valley Market has been the tenant for those 26 years. Nearly all grocery stores lease as it’s better for basic operations. Someone else can fix the roof during a once in a generation winter storm like we just had for example. A grocery store should focus on other things like food, groceries and personnel. New title to real estate doesn’t change a long-term lease in fact it relies on it.”

Three months after sending out his letter, Geiger’s was sold to Faizan. [The same Ukiah outfit now trying to develop the Redwood Valley Chevron station in Redwood Valley that’s been before the supervisors in the last few weeks.]

Faizan bought and owns the store’s property, but Braught and his three partners still own the 10-year lease to operate a locked grocery store.

In February of this year, in a filing with the California Secretary of State, Faizan identified one of its affiliated corporations as “Laytonville Long Valley Market, Incorporated, previously know as Geiger’s Long Valley Market.” In March, Faizan purchased the off-sales liquor licensed owned by Geiger’s Long Valley Market. What follows is a letter I sent last week to Faizan’s CEO regarding the anticipated re-opening of the Long Valley Market.

Haji Alam

Chief Executive Officer

Faizan Corporation

Dear Mr. Alam,

By means of introduction, I am the chair of our town council, the Laytonville Area Municipal Advisory Council.

The Council, along with most of the citizens of the greater Laytonville area, some 3,500 people, have been following with heightened interest and anticipation the re-opening of Geiger’s Long Valley Market, which has been closed since November 1, 2023.

Speaking personally, I congratulate you and your company on reaching a final purchase agreement with the previous owner (s) of the Market, and wish you well as you move ahead with plans to re-open the store for patronage by Laytonville area residents, as well as visitors. Now that the transition of ownership is presumably complete, I believe that Laytonville citizens would appreciate the opportunity to learn in a general sense the basics of the re-opening plan.

If you or your representatives would like to address the Council and the public at a meeting regarding your re-opening plans, please know that will be readily accomplished. If the Council may be of any assistance to you in your re-opening efforts, please feel free to contact me at your convenience.

Once again, wishing you good luck on your endeavors and I am looking forward to your store’s re-opening.

Sincerely,

Jim Shields

LAMAC Chair

I called Haji Alam, the CEO of Faizan Corp., the day after I sent my letter inviting him to appear at an upcoming Laytonville Municipal Advisory Council meeting to share his re-opening plans with us.

He told me that he certainly would like do so but it will be delayed because a legal dispute has arisen over the former owner(s) allegedly defaulting on the store’s 10-year operating lease. For those of you who listen to my Saturday show on KPFN 105.1, are aware that I have long been wary of that operating lease and suspect it’s the main reason the former owner(s) closed the store on Novemeber 1, 2023.

According to Alam, since the former owner(s) are no longer making monthly lease payments of $25,000, they are in violation of the original sales agreement, which includes a binding arbitration clause when disputes such as this arise. He alleges the former owners refuse to arbitrate the issue, which has left him no alternative but to sue Braught and his partners.

Realistically, at this juncture, none of us know whether the former owner(s) failed to comply with any of the terms and conditions of the sales agreement since they aren’t talking. Evidently, who’s right and who’s wrong is going to be a job for the courts to sort out.

What a way to not run a grocery store.

Here’s a question: Why would Michael Braught close the grocery store and not allow Faizan to open the store?

In the meantime, the greater Laytonville area of 3,500 people continue to pay the costs of a mess not of their making.

I don’t get it, who thinks like that?

I’ll keep you advised on any developments.