HomeBase sues LV coffee chain

Monday, May 21, 2001 | 10:35 a.m.

HomeBase Inc., the operator of home decorating House2Home stores, sued a Las Vegas retail coffee chain, alleging it defaulted on about $1.522 million in fees and costs when it terminated a license to operate in 26 HomeBase stores that were slated for conversion to the new House2Home concept.

The Irvine, Calif.-HomeBase, which said Jitters Gourmet Coffee Inc. failed to pay $6,740 in license fees and $1.515 million for the costs of building cafes in the 26 stores, seeks an order in Clark County District Court to garnish and attach Jitters' funds and assets to satisfy HomeBase's claims.

HomeBase said its claims are unsecured and that it fears Jitters' "deteriorating financial condition renders it improbable that HomeBase will be able to reach Jitters' assets ... after a judgment is entered."

Jitters, which has 12 coffee outlets in the Las Vegas area and Boulder City and four franchisees in Las Vegas, currently operates cafes in two House2Home stores in Las Vegas and three other stores in California. Jitters said it is in negotiations with HomeBase over the future of its operations in those stores.

Kim Henry, controller of Jitters, declined comment on HomeBase's charges.

Meanwhile, a Jitters franchisee, Edmark Enterprises Inc. also known as Jitters Gourmet Coffee, and as Jitters of Boulder City, filed for Chapter 7 bankruptcy protection on May 7.

Jitters of Boulder City, which is located at 1048 Nevada Highway in Boulder City, listed total assets of $543 and liabilities of $293,857.

"The Boulder City store is now being run as a corporate store as of March," Jitters' Henry said.