Secret Sandwich Society gets padlocked and closed over unpaid taxes
Downtown Richmond’s Secret Sandwich Society was closed by Virginia tax officials this week, who padlocked the East Grace Street restaurant’s doors amid a continuing legal battle between the business’ current operators and the owners of the restaurant brand.
A sign posted on the door and dated to Monday states that Society Hospitality LLC, the entity set up by Michael and Nicole Sloane to run the restaurant, are responsible for $119,419.14 in back taxes.
The Sloanes, who purchased a 70% stake in the Richmond location in 2022, have been locked in a bitter licensing dispute with David and Tashia Bailey, the original owners of Secret Sandwich Society, who still own the brand.
Sarah Vogelsong
During that litigation, which is ongoing, the Baileys have argued that the Sloanes violated their licensing agreement in numerous ways, including failing to pay taxes.
Neither party could be reached for comment on Tuesday. A Virginia Department of Taxation representative declined to answer several questions about the closure, saying the agency is “unable to comment on specific taxpayer situations.”
Per Virginia law, Society Hospitality has three business days to pay its back taxes. If it does not, a judge may order the property seized and sold to collect the debt.
The restaurant has been open since 2016, and has survived a post-COVID downturn in traffic along the Grace Street corridor, which was cited by nearby Wong Gonzalez when it announced its closure in August.
Contact Michael Phillips at mphillips@richmonder.org. Sarah Vogelsong contributed to this report.
