Edgars Bakery, the gossip bakery, will remain open in a downtown Toronto building in the face of a dispute over ownership.
The city said Thursday that it would not approve a new franchise agreement for the popular bakery, saying the dispute is not related to the ongoing bakery dispute.
Edgars, a longtime rival to the iconic Horseshoe Tavern, is one of two bakeries that has faced a long-running dispute over its business model.
The dispute has led to numerous lawsuits, including a class action suit that sought to recover $1.5 billion from Edgars and its owner, David and Carol Giese.
In a statement, Mayor Rob Ford said the City would “stand with the family and their hardworking staff as they fight for their livelihood.”
“We will not tolerate anyone interfering in our community’s business,” he said.
Giese told The Associated Press that the dispute over the Edgars brand was not related. “
While the city will not approve an agreement with the Gieses, it has been clear that the Griese’s have no interest in opening a new bakery, and that is why we will not be granting a franchise to the GIESe’s.”
Giese told The Associated Press that the dispute over the Edgars brand was not related.
He said he and his wife, Carol, are not taking legal action because they believe the dispute was settled by the city.
But the Givese family has said that they believe their business model is not viable because of the franchise deal and have refused to renew the franchise agreement, which expired last week.
The Giesses said in a statement that they have not been contacted by the City or the Toronto Star, the national newspaper that first broke the news about the franchise issue.
They said they plan to appeal the decision to the Ontario Superior Court of Justice.
A statement from the Gigses said their business has been a part of Toronto for more than 80 years and will continue to do so.
The family of Edgars owner David and Carole Gieseb has said the Gianses have been trying to sell the bakery for years.