A neighborhood wine store is closing on Montana Avenue after 75 years so the Whole Foods next door can expand.
Fred Hakim, who has run Fireside Cellars since 2003, said Anderson Real Estate Group informed him in April that his lease at 1421 Montana Avenue would not be renewed after the current three-year agreement ends in September. The company informed him of Whole Foods’ desire to expand into his space, and the expansion would be more beneficial for the property company, he said. Hakim asked the company if they could give him until at least the end of the year to find a new location and sell his remaining inventory, but Anderson denied. Hakim added that he suspects the company had a long desire for Whole Foods to expand, which is why they decreased his most recent lease from five to three years.
“Maybe even a year ago they could have told me this,” he said. “This way, they had all their options open to themselves. And so I’m the one that’s getting the short end of the stick.”
Hakim said he will try to sell the remaining inventory, a wide-ranging wine and spirit collection, before having to close the store on Sept. 30, but finding a new location and negotiating a new lease may take more than a year.
“I have maybe about $1.5 million [value] in inventory, and for me to deplete that inventory in four months is next to impossible,” he said. “The economy is not that hot right now, your high-end wines don't sell that well.”
An Iranian immigrant who came to the U.S. with $100 in his pocket, Hakim said he originally worked in the wine business to fund his own education. The son of a pharmacist, he grew up in a retail environment and wanted to serve the community after taking over Fireside Cellars in 2003. In the store, he focuses on giving individual attention to each customer, taking pride in helping people celebrate important occasions for the people they love. Some of his most prized wine is from wineries including St. Supéry and Cardinale that he won in a Napa Valley Wine Association charitable auction. Since announcing the closing, Hakim said his neighborhood has shown an outpouring of love and support for his business.
“Always, I take pride in recommending what I really think is the best for the customers, even if I make less money or not, because at the end of the day, if they’re happy, they come back and support me,” he said. “All the support that I'm getting from people shows that the past two or three years, I’ve done the right job for them.”
As a neighborhood business, Hakim added that one of his employees for more than 20 years, Mark, was diagnosed with cancer and that customers come in every day asking about his health and expressing their sympathy. The neighborhood’s outpouring of support proved that the most important thing he built over the past 22 years was community, Hakim added.
Hakim said that he understands Anderson did not have any legal obligation to inform him of the lease ending, but expected more courtesy as a 22-year tenant. He also said he does not blame Whole Foods for wanting to expand and that as a business owner, he knows one has to take advantage of every opportunity. However, he said he feels that small businesses are essential to the area as corporate tenants increase.
“My biggest crime is even though legally, the landlord didn’t have to give me any heads up, they are a big property owner and there was no need for them just to keep me in the dark all that time,” he said. “What, they will have all corporate tenants and make Montana [into] Rodeo Drive, Santa Monica?”
Anderson Real Estate Group did not respond to a request for comment.
Before it closes, Fireside Cellars will offer heavily discounted prices on merchandise, up to 60% off on many items. The store, located at 1421 Montana Avenue, will close on Sept. 30.
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BY SAM MULICK