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Some businesses in Southern California have closed permanently. The most popular Sweet Lady Jane Bakery closed on New Year’s Eve.
Sweet Lady Jane was founded in 1988 by Jane Lockhart. She sold the business several years ago. Her store count has grown to six, but all are currently closed.
The closing seems pretty sudden considering the cakes are still on display at the Beverly Hills store, and was announced just two weeks after the bakery announced its Encino remodel.
In announcing the closure, the store said in part, “While customer support and loyalty has been strong, sales are not sufficient to continue operating in California.”
Customers like Evan Kowitt are surprised.
“Let me tell you, there is sadness in my heart,” Kowit said. “There were her birthdays and there were weddings where you knew it was Sweet Lady Jane Cake you wanted to be there.”
But Sweet Lady Jane’s isn’t the only store to close around New Year’s.
IHop, located three miles down Santa Monica Boulevard in West Hollywood, closed on January 1st, and Marco’s Italian Restaurant, also in Weho, recently closed.
“Last year we closed more than 85 businesses,” said Genevieve Morrill, president and CEO of the West Hollywood Chamber of Commerce.
“I think it’s a perfect storm of everything happening all at once,” Morrill said. “The pandemic has dragged on and there are still large amounts of unpaid rent and loans. The demand for goods and services has increased by 30%, and inflation continues to be the highest ever.”
And last July, the city of West Hollywood set its minimum wage at $19.08 an hour, the highest in the nation.
“I think we’re very concerned that we’re going to be one of the most expensive cities to shop, eat and play,” Morrill said. “What we have to do is find a balance: focus on helping the underserved, while at the same time building a business that allows us to help the underserved.” How can we maintain it?”
Back at Sweet Lady Jane, Kowitt wishes there was a way for the bakery to stay open, even if it meant raising prices.
“If they had asked, I would have said yes,” he said. “We would have paid more for the cakes so that the people making them were paid a living wage.”
Sadly, those workers are now out of work and the bakery is closed. The business, which opened in 1988, came to a sad end.
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