Investor Ron Burkle and real estate developer Andrew Zobler, who teamed up with Sydell Group to develop and manage boutiques such as NoMad in New York and Freehand hotels, are now on opposite sides of a lawsuit.
Burkle is accused of trying to oust Zobler from the CEO post at Sydell, replace him, and use the company for his own benefit, according to the lawsuit filed in state court in Manhattan.
According to a report by Bloomberg, “Burkle explained that he believed his equity investments in certain hotel projects were ’getting screwed’ by Zobler’s efforts to grow the company and partner on new projects with other hotels not affiliated with Burkle,” according to the lawsuit. He also made it clear he wants to use the company to benefit his other business interests, according to the complaint.
A Burkle representative said in a statement that Zobler became “overwhelmed” by growth over the last few years, according to Bloomberg. Burkle, according to the lawsuit, has occupied a “palatial” suite at The Ned hotel in London, another Sydell property, without paying since April.
Sydell is seeking a court order to preserve the status quo pending a determination from an arbitrator on its request for an injunction blocking Burkle’s “ongoing and threatened conduct.”