c/o Alice’s Tea Cup
Alice’s Tea Cup, renowned for its whimsical atmosphere, delicious scones, and extensive tea collection, has a new owner. This development comes just in time as the beloved eatery, founded in 2001, was facing closure due to $600,000 in unpaid bills. The tea shop–which has locations at 102 West 73rd Street, 156 East 64th Street, and a to-go spot at 43 Hicks Street in Brooklyn–is now set for a new chapter.
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According to a July 30 report by Crain’s, Alice’s Tea Cup faced closure due to significant debts, including a $500,000 loan from the federal Small Business Administration, as reported in court filings. Credit card companies were also among the creditors. The plan was to sell off their remaining assets to pay off these debts.
However, on July 31, the New York Post reported, “There’s a new Mad Hatter in charge of celebrity-favorite New York City restaurant Alice’s Tea Cup.”
According to Lauren Fox, who founded the shop with her sister Haley, “After 23 years, Alice’s Tea Cup finally found the right people to pass the baton to and the group is led by Jeni He who plans to be faithful to the core concepts and brand, and grow Alice’s Tea Cup beyond the current locations.”
In December 2020, the Fox sisters were forced to close all their locations following Governor Cuomo’s announcement to indefinitely suspend indoor dining due to the pandemic.
They began considering selling their business in October 2021 amid the pandemic, driven by staffing shortages, adverse weather, COVID regulations, and the challenges of running an afternoon tea house outdoors.
“We were in the middle of building the interior when Sept. 11 happened,” said Lauren Fox, 51, in a New York Times interview. “When people sat down for a pot of tea and a scone, they felt safe, comforted, and normal. There are no windows inside, so it’s a real rabbit’s hole feeling, like you’re hidden from everything. People really responded to that, and to us.”
Up until July 31, efforts to sell the business had proved unsuccessful. Earlier this month, the sisters enlisted lawyer Lawrence Morrison, known for his expertise in corporate restructuring, to address their backlog of bills. According to filings that appeared in Manhattan Supreme Court on Monday, July 29, Morrison was hired through a legal maneuver known as “assignment for the benefit of creditors.” This process, similar to bankruptcy protection, is considered less expensive, time-consuming, and public, though creditors may have less leverage compared to a traditional bankruptcy case.
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Now, Alice’s Tea Cup continues its run of over 20 years at its Upper West Side location, known in-house as “Chapter 1.” The tea shop later expanded to two additional locations: 156 East 64th Street on the Upper East Side (Chapter II) and 43 Hicks Street in Brooklyn Heights, which serves as a takeout spot.
ILTUWS spoke to a staff member on July 31 who mentioned hearing “whispers” of a possible sale but had little information beyond that. All locations have remained open through the transition to new ownership.
Alice’s Tea Cup is a favorite for locals, tourists, and celebrities, including Conan O’Brien, Julia Roberts, and Amy Schumer. The tea shop is also renowned for hosting memorable birthday parties, bridal showers, and baby showers.
Hope big-ticket Influencers can be part of the new set-up!
The scones, and baked goos in general, aren’t very good.
Perhaps the new owners can fix that issue. I’m sure it cut into sales over the decades.
Really glad to hear this. Alice’s Tea Cup is a beloved Manhattan institution for so many of us. I disagree with the comment about the baked goods. The scones are delicious.
I absolutely love Alice’s but I hope the new owner makes the menu more vegan and gluten-free friendly by adding a plant-based sausage to its brunch menu and a tofu scramble would be lovely too. Having a gluten-free option that is not just a bowl of berries for dessert would be nice too.