Sepi Mashhoon
Paul Wellman (file)

Xanadu Bakery in Montecito will be shutting its doors in mid-January after serving delectable treats for 30 years. Running the bakery was not a piece of a cake for the owners after a 2010 electrical fire left serious construction work and legal disputes with the landlord. Xanadu owner, Sepi Mashhoon, who also owns Foodland, bought the pâtisserie in 2008. Two years later, it was almost gutted by the early morning fire. The barbershop next door was also demolished.

After forking over hundreds of thousands of her own money to restore and spruce up the place, Mashhoon sued property owner Jim Rosenfield in April 2013, claiming he breached the lease because after the fire, he did not fully restore the premises to the original condition.

According to attorney Patrick Morris, who is representing Mashhoon, the barbershop next door was completely restored to its original condition. “Our side was not,” he said. He further contended Rosenfield didn’t want Xanadu there from the day he took over as property owner and manager. Morris said the parties settled; Mashhoon received about $230,000 (which included five months of free rent) and was able to stay open during the holidays. She will vacate the premises on January 15.

Representing Rosenfield — who owns and manages businesses in Marin County and the Los Angeles area — attorney Lee Dresie issued this statement: “The owner of the shopping center and Xanadu were able to settle their disputes. As part of that settlement, Xanadu agreed to vacate the shopping center and we wish them the best of luck going forward.”

Expressing disappointment with the way things turned out, Mashhoon said she couldn’t continue to do business with Rosenfield. “I am very sad that we have to make this decision,” she added. “We love our customers and appreciate their business all of these years.”


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