EFTA00800082.pdf

MUCHNICK, GOLIEB & GOLIEB, P.C. MEMORANDUM TO: David Mitchell CC: Randy Amengual Stephen P. Hanson FROM: Howard Muchnick SUBJECT: Closing the Henry DATE: March 6, 2018 Whether by design or poor judgment, you have made it impossible for the restaurant to operate and to remain in business. Steve will not incur additional personal expenses to support the restaurant for what has become apparent — the project cannot survive under your leadership. You failed to fund $100,000 of the $800,000 budgeted for, and needed by, the restaurant to pay for its anticipated early losses. You then borrowed $100,000 from the restaurant, only $20,000 of which has been repaid despite your promises of immediate payment. Thus, the restaurant is without the money needed to operate. Unless you return to the restaurant $40,000 of the $100,000 that the hotel borrowed from it, being the amount needed to pay sales tax due next week, Steve will inform the staff later this week that the restaurant will close no later than March 18, 2016. Much of the litany of complaints for how we got to the current situation have been aired previously. However, your actions today to deny Alan Hochhauser computer access to the information needed for gift card/guest information and reconciliation is without precedence. Alan was costing the hotel nothing out of pocket and helping the restaurant to operate. That you denied Erin Pepper access to the hotel's computer platform to continue her work on public relations and the guest experience is illogical and solidified Steve's belief that you are intentionally sabotaging the restaurant. See their e-mails attached. Thus, despite the restaurant's wonderful reviews and its direct march towards profitability, it will die before having had a chance to succeed. HWM HWM/mb piclientA0000039amcmok2018Thenor.foroe.close.0306.docx EFTA00800082  Miriam Blemur From: Stephen Hanson > Sent: Tuesday, March 06, 2018 5:56 PM To: Howie W. Muchnick; Miriam Blemur Subject: Fwd: Skyware Howie - as you can see below - David locked Erin out of Skyware (computer reservation program) without even informing her. Please read both emails as the punchline is we have no access to VIPs, guest profiles, revenue items, rates, occupancy so we know how to staff - i.e. how to run a successful revenue business. See email i forwarded also from Alan Forwarded message From: Erin Pepper <1 Date: Tue, Mar 6, 2018 at 5:39 PM Subject: Re: Skyware To: David Mitchell Cc: Alan Hochhauser >, Stephen Hanson Why create more work for Denise, especially since they are short staffed and could use all the help that they can? Denise and I work together as a partnership. Why waste time overloading Denise or directing the guest to her instead of grabbing them in real time, to book direct. Guests demand instant results, the longer we wait to book someone the more likely they are to book elsewhere or an OTA. I need real time access to the platform to maintain oversight over our VIP's (guest experience), new reservations, notes that are being put in reservations, daily occupancy and room availability, guest feedback on review sites as it relates to our occupancy/reporting, guest data, and monitoring revenue and marketing initiatives etc.. At the very least access to the reporting should remain in tact. I will go to Denise for reservations if you feel that is best for the business. Additionally, Alan and I were reviewing gill card/guest information for reconciliations and when he logged in he saw his reporting and full access was cut off as well. He follows up with this daily due to in correct loading of the gift cards- he can speak more to this. Thanks, Erin Pepper 1 EFTA00800083 VP, Brand and Experience LIFE HOTEL 19 West 11. New York. NY 10001 M:516_3565587 AIM= tEl t 9firthoethavrod. V Qhfehouty t3 tWhronatl.fmy ® From: David Mitchell <1 Date: Tuesday, March 6, 2018 at 5:12 PM To: Erin Pepper Subject: Re: Skyware Denise happy to handle any requests for reservations , as she does for me and others What info do you need in regards to VIP , so I can help arrange it If you you would like to speak about anything, I am available tomorrow DAVID MITCHELL Mitchell Holdings LLC 745 Fifth Avenue EFTA00800084 New York NY 10151 USA 1212-486-4444 On Mar 6, 2018, at 2:52 PM, Erin Pepper <I > wrote: Hi David- Is there a reason my access to skyware has been limited that I can now only see basic information? Seems like this would be a mistake since I only have housekeeping access now? I can no longer - I. Make reservations 2. Access any Reporting le vip, guest data 3. See the Room chart ie availability, 000, dns etc Thanks, Erin Pepper VP, Brand and Experience LIFE HOTEL 19 West 31st Street New York, NY 10001 M: 516.356.5587 3 EFTA00800085 4 EFTA00800086  Miriam Blemur From: Stephen Hanson < Sent Tuesday, March 06, 2018 5:56 PM To: Howie W. Muchnick; Miriam Blemur Subject: Fwd: FW: This is petty compared to Erins prior email. But David wants to charge us for the storage room 104 when in plan and in emails from day 1 in construction - 2 vault areas were to be assigned to restaurant for storage and office space. One is uninhabitable because of plumbing equipment taking up the entire space. The other is completely always water soaked and also uninhabitable. Forwarded mcssa e From: Alan Hochhauscr Date: Tut, Mar 6, 2018 at 5:49 PM Subject: FW: To: Steve Hanson David sent me the below e-mail requesting adding rent expense for room 104 retroactive to January. My comments: 1. I am not aware of any prior discussion or arrangemen ts regarding this room 2. The room was used for hotel storage as well as F&B up until a week or two ago 3. For January and February, there's no way that room would have generate $4,000 in revenue. Rooms were sold for $100 and occupancy was 100% maybe a handf being ul of times 4. Even if the room was sold for $4,000 over the two month s, there would have been associated costs with the rental yielding significantly less profit. , a. 0TA commissions b. Housekeeping labor c. Supplies and amenities Alan I lochhatiser Chief Financial Officer EFTA00800087  Henry At Life Hotel 19 West 3 I' St NY NY 10001 347-574-6065 f 91.idotelotwyort V attfehoirl, f „ ptIONOZ, n 4: • From: David Mitchell [mailto Sent: Tuesday, March 06, 2018 12:37 PM To: Alan Hochhauser < Subject: Please put into rent statement F and B office which I think is a month to month arrangement at $2000 per month Jan-March = $6000 Thank you, David DAVID MITCHELL Mitchell Holdings LLC 745 Fifth Avenue New York NY 10151 USA 2 EFTA00800088 1212-486-4444 3 EFTA00800089