Jolly Roger closure stuns community

The owner of the landmark Jolly Roger and Laguna Beach Brewing Co. restaurants recently shut them down because of a canceled liquor license escrow.

Richard Sang, who acquired the restaurants in November 2005, shuttered them Sept. 29 with little notice to employees. Customers in recent weeks have been jolted as they found the longtime restaurants closed.

The Jolly Roger has been at the same corner for more than 50 years. Sam Goldstein purchased the historic building at 400 S. Coast Highway in August for more than $11 million and said at the time he had no plans to change his tenants’ businesses.

Sang said he was current with payments to all of his vendors and in full compliance with city code requirements, except for some recent issues with signs he posted that had to be redesigned.

Sang, who purchased the restaurants at no cost in exchange for much-needed maintenance work, said escrow had been opened to transfer the restaurants’ liquor license from the previous owner.

“The lease was contingent on the transfer of the liquor license,” Sang said. “The agent told me on Wednesday that week that [the liquor license owner] had called to cancel the escrow.”

Sang’s father had suffered a stroke the day before, and he was in Stockton taking care of him when he received the call from his agent.

“I asked him, ‘What does that mean for me?’ He said that I wouldn’t have the ability to sell alcohol beginning Oct. 2,” Sang said.

They discussed the possibility of acquiring a license, but even if that process were started, Sang had the potential of running a restaurant and brewery for several months without being able to sell alcohol.

“My lawyer said, ‘You can’t take a chance; your dad just had a stroke, and my advice to you is to close the place down,’” Sang said.

He said he told his employees as soon as he had made his decision. He laid them off Sept. 29.

“I love them to death, and they’ve been a great crew,” Sang said. “I wasn’t given any notice, either. The Jolly Roger has been an institution for years and years, and it was a very tough decision. I really enjoyed being in Laguna Beach.”

Sang reportedly ordered vats of specially brewed beer dumped out.

Former manager and 25-year Jolly Roger veteran Jeannie Mallarian has since moved on to the White House restaurant, which has begun serving breakfast to fill the gap left by the Jolly Roger’s closure.