Former owners of Sweet Lady Jane bakery, a celebrity favorite, settle wage theft lawsuit

The previous owners of bakery chain Sweet Lady Jane, facing “financial difficulty,” have settled a wage theft lawsuit brought by a former employee, according to court documents reviewed by The Times.

Details of the settlement between SLJ Wholesale LLC and Sweet Lady Jane LLC and Blanca Juarez, who worked at the bakery for about two months in 2022, are under seal.

The settlement addressed only Juarez’s individual claims. She alleged she was not compensated for all hours worked, including overtime, as well as for missed meal periods and rest breaks, according to a class-action lawsuit filed in June last year in Los Angeles County Superior Court.

Juarez and her legal counsel filed July 9 to dismiss her class-action lawsuit. An attorney for Juarez did not respond to a request for comment. Juarez could not be reached for comment.

Lawyers for the companies behind the bakery had denied Juarez’s allegations. The court filings did not name who owned the companies.

The companies maintained that Juarez and other employees who could join the lawsuit have been paid “all sums earned by them that are due.” It’s unclear whether more employees joined the suit.

Lawyers for the previous owners of Sweet Lady Jane did not respond to a request for comment about the settlement.

Juarez’s legal case was cast into doubt after the bakery abruptly closed its business on New’s Years Day, citing a lack of sales that prevented it from paying its “treasured employees,” according to a now-deleted Instagram post from January.

Near a week after the closure, lawyers for the bakery submitted court documents that said the companies intend to file for a state alternative to bankruptcy, which could allow creditors, including former employees, to try to recover what they are owed.

Negotiations for a settlement to resolve Juarez’s individual labor code claims began around May, according to court documents. A copy of the settlement was filed to the state Labor and Workforce Development Agency on July 9.

Amid the legal battle, Sweet Lady Jane opened its doors for business again — this time under the ownership of Julie Ngu and Matt Clark.

The couple bought the bakery’s assets, including the recipes and brand name, in February, emphasizing in interviews that they “really, really, really want to make sure that everybody understands that we have nothing to do with the old owners.”

Tables are piled up against the front counter of Sweet Lady Jane in Santa Monica on Jan. 9, 2024.

(Genaro Molina / Los Angeles Times)

“We’re only as good as we treat our own people. … Our staff is our No. 1 priority,” Clark told The Times on Friday. “I’m glad that at least that chapter of the old ownership is over.”