Alice Tea Cup, a New York restaurant popular among celebrities, has appointed a new Mad Hatter.
The sisters who founded a popular “Alice in Wonderland”-inspired tea house have sold the business after more than two decades, but they are saddled with a huge debt, The Washington Post has learned.
“After 23 years, Alice Teacup has finally found the right person to pass the baton to. The group is led by Jenny He, who will stay true to the core concept and brand and grow Alice Teacup beyond its current location,” said Lauren Fox, who founded the store with her sister Hailey in 2001.
With three locations on the Upper East Side, Upper West Side and Brooklyn, Alice Tea Cup serves scones, finger sandwiches and hundreds of varieties of tea, making it a fun staple for kids, tourists and stars alike.
Celebrities such as Conan O’Brien, Amy Schumer, the Olsen twins Ewan McGregor, Julia Stiles, Laura Linney and Julia Roberts were all reportedly avid fans, and many guests were spotted lounge at tables sipping drinks with their young families.
On Monday, the store filed for a creditor assignment, a way around Chapter 11 bankruptcy proceedings that helps restructure debt and manage troubled assets.
That means its assets and liabilities will be managed by a law firm that specializes in corporate restructurings. Attorney Lawrence Morrison was hired on July 13, court documents state.
The tea house owes about $230,000 to credit card companies, contractors and other businesses, according to a filed list of creditors.
The biggest portion is a $150,000 debt owed to the federal Small Business Administration.
At the height of the COVID-19 pandemic, Alice Teacup received an $800,000 grant from the SBA’s Restaurant Revitalization Fund. According to the New York Times:reported in 2021 that the store was looking for a new owner due to its slow recovery from the pandemic.
Former owner Hayley Fox said Monday’s filing is to address outstanding debts and does not mean the store’s teacups and saucers will be sold for scrap.
Fans of the themed restaurant will be grinning like the Cheshire Cat at the news that Tea Time will continue any day now, despite previous reports incorrectly saying the establishment had already closed.
Fox said the new tea shop owner has previous experience in restaurant management and is “the perfect person for the job.”
“No place is being shut down or closed down and the party goes on!” her sister Lauren added in a statement.
Alice Tea Cup opened its first location on the Upper West Side in 2001 and quickly became a favorite with kids, families, and teatime enthusiasts alike, offering traditional teatime treats like biscuits, finger sandwiches, and scones, as well as a wide variety of loose leaf teas.
Growing up with a father who was a tea addict, the Fox sisters dreamed of one day opening their own tea shop, a dream that came true about 23 years ago when older sister Hailey moved back to New York City from Los Angeles.
“I told my husband the only thing I missed was the tea shop, and he said I should open one, and so I did,” she told The Post in 2005.
That year, the sisters opened a larger, 2,800-square-foot tearoom, Alice Teacup Chapter II, on East 64th Street, where the menu expanded to include a full restaurant fusing American cuisine with the flavors of tea, such as smoked chicken breast with Lapsang souchong. In 2019, they opened a small cafe and takeout spot in Brooklyn Heights.
