Pinky Cole’s plant-based empire Slutty Vegan faces fresh turbulence as an Atlanta landlord pursues nearly $90,000 in alleged unpaid rent, marking another chapter in the restaurant chain’s ongoing financial struggles. The lawsuit comes just months after Cole restructured her once $100 million-valued business, highlighting the challenges facing even the most celebrated food entrepreneurs in today’s volatile market.
Trouble Mounts
According to The Atlanta Journal-Constitution, the complaint filed by an affiliate of Asana Partners in Fulton County State Court targets Cole and her business entities for alleged lease violations on two Edgewood Avenue properties housing Slutty Vegan and The Morning After locations.
Court documents show the total amount sought exceeds $87,000, encompassing past due rent, late fees, and accumulated interest.
The legal action centers around lease agreements originally executed by Slutty Vegan Inc. in 2019, which were later assigned to SV Franchise LLC in July, with Cole serving as the authorized representative.
The timing proves particularly challenging for Cole, who recently spoke candidly about her company’s financial restructuring.
“When a ship is sinking, you gotta be able to start patching holes,” Cole explained during an April appearance on the “Earn Your Leisure” podcast, describing her decision to dismiss her entire executive team and return to hands-on leadership after focusing on motherhood and brand partnerships.
Asana Partners, the real estate firm behind popular Atlanta destinations like Krog Street Market and Plaza Fiesta, alleges that SV Franchise LLC failed to meet payment obligations following the lease assignment. The lawsuit represents one of several legal challenges confronting Cole’s businesses during this transitional period, as creditors seek resolution for debts tied to the pre-restructuring era.
The current legal troubles echo earlier employment-related disputes that tested the company’s resilience.
In 2023, three former employees at Slutty Vegan’s Brooklyn location filed suit claiming they were denied promised bonuses, overtime compensation, and alleging tip withholding violations under federal labor laws, according to Patch.
The case, which initially threatened to expose broader operational issues within the expanding franchise, settled in September 2023, with each plaintiff receiving $10,000.
However, recent developments suggest ongoing complications with legal settlements.
During an April court hearing, attorneys for former Bar Vegan employees indicated that a $95,000 settlement approved in December 2024 remains unpaid. The settlement addressed a 2022 class-action lawsuit involving allegations of tip withholding, overtime violations, and minimum wage law breaches. Defense attorneys attributed the payment delay to insolvency proceedings affecting Slutty Vegan Inc., the original corporate entity from which Cole has since distanced herself.
Cole’s journey from food truck entrepreneur to restaurant mogul began with remarkable success.
Starting in 2018, Slutty Vegan expanded rapidly to 14 locations, securing $25 million in funding for 25 percent equity and achieving a $100 million valuation. Yet beneath the impressive growth metrics, operational challenges mounted as corporate overhead reached an unsustainable $10 million annually.
The restructuring process forced Cole to temporarily relinquish control of her brand due to cash flow pressures, though she successfully orchestrated its repurchase through a new entity named “Ain’t Nobody Coming to See You, Otis LLC.”
This strategic maneuver enabled the launch of what Cole terms “Slutty Vegan 2.0,” featuring a streamlined operation focused on eight locations across Georgia, Alabama, Maryland, and New York, although only five locations are open now.
The revamped business model emphasizes sustainable growth over rapid expansion, incorporating lessons learned from the original venture’s challenges. Cole has outlined ambitious plans for international expansion to Dubai and Africa while developing complementary concepts, including Bar Vegan and Hayes Hospitality Group, a joint venture with her husband, Derrick Hayes.
