economy:

Two Melting Pot locations close after loan defaults

Kyle Hansen

The Melting Pot restaurant on Eastern Avenue closed Tuesday after defaulting on equipment loans.

By Steve Green (contact)

Published Tuesday, June 9, 2009 | 12:38 p.m.

Updated Wednesday, June 10, 2009 | 10:01 a.m.

Sun business and economy coverage

Two Las Vegas-area Melting Pot restaurants have closed after defaulting on equipment loans.

The restaurants were in Silverado at 8955 S. Eastern Ave. at Pebble Road; and in western Las Vegas at 8704 W. Charleston Blvd., near Rampart Boulevard.

A spokeswoman at the Tampa, Fla., headquarters of Melting Pot, which franchises the concept around the country, on Wednesday said the company hopes to line up a new franchisee for Las Vegas soon.

The company says there are 142 restaurants in 37 states. They offer a fondue-based interactive dining experience.

Clark County District Court records show a company associated with the two Las Vegas-area locations, Sierra Fondue LLC, was sued over past-due loans last year by General Electric Capital Business Asset Funding Corporation of Connecticut and CEF Funding V LLC.

Court records indicate Sierra Fondue didn't respond to the complaint and a court order was granted giving the lenders the authority to seize equipment, furniture and fixtures securing the loans.

The lenders said that as of September, $268,000 was due on the West Charleston loan, dating to 2003; and $692,000 was due on the Eastern Avenue loan issued in 2006.

On its Web site, the Melting Pot said of these locations: "It is with great sadness that we announce that this location has closed for business. We are very optimistic about future development in the Las Vegas area and look forward to being able to serve you fondue there again soon.''

Discussion: 28 comments so far…

By Strykertyme

6/9/09 at 1:46 p.m.

Suggest removal

It is a wonder that the over priced cheese has lasted this long.
By rstanberry

6/9/09 at 2:04 p.m.

Suggest removal

Sorry but this is a sad day...
By rejco100

6/9/09 at 2:18 p.m.

Suggest removal

A million dollars in debt and they really thought melted cheese and bread cubes could pay that off?
By denro

6/9/09 at 2:29 p.m.

Suggest removal

Burgers maybe in the right location, But fondue?
By goingbust

6/9/09 at 2:40 p.m.

Suggest removal

Velveeta and french roll = fondu dinner for $3!
By jaesun

6/9/09 at 3:07 p.m.

Suggest removal

Kraft Cheese and sandwhich bread for $1.50 !
By davidwayneosedach

6/9/09 at 3:16 p.m.

Suggest removal

Swiss fondue is too specialized to serve in a fast food restaurant. You not only need the specialty cheese and accompanying wine you need the know how. I'd be surprised if the Melting Pot chain survives the recession.
By alohaseven

6/9/09 at 4:12 p.m.

Suggest removal

Everyone is having issues these days. Sorry but the food was good but very expensive.
By rejco100

6/9/09 at 5:43 p.m.

Suggest removal

The employees are thinking "Darn, it took me two years of walking the pavement to get this crappy job".
By LasVegas2009

6/9/09 at 8:05 p.m.

Suggest removal

Fondue as an addition to a current working menu may work but as the draw anyone with any restaurant experience would tell you it would not work. Who says I feel like fondue tonight?
By James_P_Reza

6/9/09 at 9:32 p.m.

Suggest removal

Have any of those commenting ever actually eaten there? They have 140+ restaurants for a reason, and you armchair restaurateurs aren't it.
By LasVegas2009

6/9/09 at 9:36 p.m.

Suggest removal

Make that 138 and dropping........
By rejco100

6/10/09 at 6:52 a.m.

Suggest removal

Did they have a Drive-Thru window?
By mred

6/10/09 at 7:23 a.m.

Suggest removal

The problem was the name, people don't see themselves as being part of a melting pot, but as part of salad bowl.

fondue does not mean bread and cheese, but could be meat, vegetables and broth etc. e.g. chocolate with fruit, I think this is tragic and some government bailout funds should be advanced to prevent this business from going to pot.
By WhosLaughingNow

6/10/09 at 8:38 a.m.

Suggest removal

Good riddance.
By stevem

6/10/09 at 10:56 a.m.

Suggest removal

meh.
By Vulcan

6/10/09 at 2:34 p.m.

Suggest removal

I never understood boiling meat for $50. Anyone ever heard of a grill. Dessert and cheese were okay, but boiled meat???
By labdaddy

6/10/09 at 2:48 p.m.

Suggest removal

Government cheese and crackers lifted from another restaurant's table - FREE
By rstanberry

6/10/09 at 2:51 p.m.

Suggest removal

I loved this place and actually had the idea to franchise it to Las Vegas 8 years ago. Whoever owned the franchise is an idiot, the same thing happened to La Mars donuts too. This is an awesome resturant and I am sorry to see it go.
By safemike1

6/10/09 at 6:19 p.m.

Suggest removal

Talk about an overpriced place!! If there was ever a place where you did not get your money's worth, ANY melting pot would be it.

You can not overcharge the customer on a regular basis like that and then expect to stay in business. Customers talk with their wallets.
By buzzbomb

6/10/09 at 6:35 p.m.

Suggest removal

Mr. Reza; Many restaurant franchises (other industries too) grow to several hundred locations before they fail. It is because these chains grow by selling franchises & stock and using lots of leverage rather than relying on profits from existing locations for growth as you might imagine. A good example is the nearly 400 Bennigans that closed at the start of the credit crisis.
By dollarbillz

6/10/09 at 11:20 p.m.

Suggest removal

I personally think it was the ferm-un-da cheese that went bad. check your sack guys, its hot and humid out there.
By JahReb

6/11/09 at 6:02 a.m.

Suggest removal

rstanberry,

LaMars was owned by Jim Rogers. I am pretty sure he does not fall under the idiot franchisee category. But anyways, that is why the anchors on KVBC were always eating LaMars donuts on air and shamelessly plugged LaMars like a thousand times an hour during their news broadcasts.

As for Melting Pot, the demo of fondue fanatics is just not that large, and thus I never understood the concept of a big-box, expensive fondue joint. The business model is shaky at best - a very small potential client base, fondue fanatics, and an expensive, static menu. The only thing stupid the franchisees did apparently, was to invest in the Melting Pot franchise in the first place.
By Martel

6/11/09 at 8:43 a.m.

Suggest removal

I was given a gift card to this place and was flabbergasted at the price and the relatively small portions.
How could they charge so much? They obviously didn't have to hire professional cooks because all the cooking was done by the waiters. The raw materials were not exotic or expensive and could have been prepared by minimum wage employees.
When I walked out I commented to my wife that I would never, ever go back and spend my own money for such overpriced/over-hyped fare.
By stevem

6/11/09 at 1:08 p.m.

Suggest removal

80% of las vegas probably went once, maybe twice, and then the gimmick wore off.

i mean, really...you can go BUY a fondue set and use it over and over again for the price of ONE meal at this place.

also, people are living cheap now.