From employee lawsuits to event deposits, what we know about The Signature Room's abrupt closure

The abrupt closure of Chicago's iconic fine dining restaurant The Signature Room on the 95th floor of the former John Hancock Center has left employees in shock and some customers seeking refunds for event deposits they say have not been returned.

The elegant restaurant, known for its nearly 360-degrees breathtaking views of Lake Michigan and downtown, first announced its closure Thursday via a message posted at the entrance.

"It is with a heavy heart that we announce the permanent closing of our beloved Signature Room at the 95th effective Thursday, September 28, 2023," the sign, obtained by NBC Chicago, read, in part.

The restaurant now faces legal action from a hospitality workers' union, who said the establishment failed to give required notice of layoffs ahead of the closure.

Here's a look back at how the closure unfolded, and where things stand now.

Signature Room on 95th floor of former Hancock building abruptly closes

A sign posted at the restaurant's location Thursday cited "economic issues" as a reason for the "permanent" closing.

"It is with a heavy heart that we announce the permanent closing of our beloved Signature Room at the 95th effective Thursday, September 28, 2023," the sign, obtained by NBC Chicago, read. "For over 30 years, we have had the privilege and honor of serving Chicagoans and visitors from all over the world. Unfortunately, after the closure of our city and restaurant due to the COVID-19 pandemic, we have been faced with severe economic hardship and the challenges have been greater than anticipated."

A similar note was posted to the restaurant's website and Facebook page.

News of the closure, which was first reported by Crain's Chicago Business, shocked even other businesses in the building, including 360 Chicago, which sits just one floor below the restaurant.

“Like many, all of us at 360 CHICAGO were shocked and saddened by the sudden closure of the Signature Room. For 30 years we’ve not only shared our own dedicated elevators with the Signature Room, but they’ve been wonderful neighbors and partners, and their presence in the building will be missed,” 360 CHICAGO managing director Nichole Benolken said.

Earlier this year, Crain's reported that the space housing the restaurant was up for sale.

Signature Room employee memo sheds light on what led to abrupt closure

A memo sent to Signature Room employees Thursday obtained by NBC Chicago called the closure "extremely difficult" and "overwhelming."

"Dear Signature Room Team," the memo, obtained by NBC Chicago begins. "We are truly saddened of the news that -- after 30 years on top of Chicago -- The Signature Room is closing effective Thursday, September 28, 2023. We are extremely disappointed that new lease terms could not be successful renegotiated with our landlord and, thus, not allowing us to continue our mission at the place we all love. As a result, we are forced to close our doors."

The full note can be found below:

Dear Signature Room Team,

We are truly saddened of the news that -- after 30 years on top of Chicago -- The Signature Room is closing effective Thursday, September 28, 2023. We are extremely disappointed that new lease terms could not be successful renegotiated with our landlord and, thus, not allowing us to continue our mission at the place we all love. As a result, we are forced to close our doors.

This an extremely difficult situation for us all, and we all share in the shock of this overwhelming news.

We appreciated your dedication and the service that you have provided to The Signature Room over the past 30 years. We simply couldn't have done it without you.

Sincerely,

Human Resources

The memo also indicated that information would be provided to employees regarding insurance, and personal items left behind.

Customers on the hook for deposits of upcoming Signature Room events

Andrea Purcell, of California, told NBC 5 Responds she put down a $1,700 deposit for her mother’s upcoming 70^th birthday party.

Purcell was surprised to hear the news of the restaurant’s closure Thursday, saying she just paid part of her deposit on Wednesday. Despite repeated calls and emails, Purcell says she can’t get through to anyone with The Signature Room to get a response about a refund.

"Even if you're going to close, have the common decency to give some sort of notification," Purcell said. "The way I understand it, they left a letter on the door. But what about the people like me who live in California that book? There was no e-mail, there was no anything. We had to find out through TikTok and Facebook. It’s crazy."

Purcell said most of her e-mails have bounced back and calls to the restaurant have gone unanswered.

Another customer who had booked an upcoming event, Tanzina Chowdhury, was in a similar predicament.

"Everything was wonderful two years ago, that is why I rebooked it," Chowdhury said, of an event she booked for Nov. 4.

Signature Room applies for $2 million in PPP loans

NBC Chicago learned that Infusion Management, which owns the restaurant, received PPP loans for $2 million in 2020 and 2021, both of which were forgiven.

Javier Perez, an attorney who specializes in labor and employment law, said the first option for customers is to send a formal letter to the company.

"You can contact the Secretary of State or even check the website to find out where they are registered to receive correspondence," Perez said.

Perez said hiring an attorney is also an option, as is legal action.

"If they are going under, you maybe have to might get in line in terms of creditors that they owe money to," Perez added.

Hospitality union files lawsuit on behalf of Signature Room employees, alleging violation of WARN Act

The hospitality workers' union UNITE HERE Local 1 on Monday filed a federal lawsuit against the owners of Chicago's Signature Room restaurant, alleging they violated the Worker Adjustment and Retraining Notification Act by failing to give proper notice of the establishment's closure, according to the union.

The lawsuit, filed in U.S. District Court, alleged the 132 restaurant employees represented by the union didn't receive a 60-day written notice of any closing or mass-layoff, which is required under the WARN Act, a federal labor law. Under the Act, an employer must provide employees with any wages paid for the period of the violation, up to 60 days, as well as premiums for health benefits, pension plan contributions and other benefits.

UNITE HERE Local 1 president Karen Kent in a statement said the union will "pursue every avenue to ensure Signature Room workers see justice serve," saying what the restaurant has done to workers is a "disgrace."

"This restaurant is iconic not just for its views but because of the hard-working staff, many of whom dedicated decades of their lives to this place," the statement read. "For the Signature Room operator to jettison these workers overnight is both immoral and illegal. The decimation of the Signature Room extends far beyond personal memories – it is a devastation to the families, futures, and lives of these restaurant workers."

What's next for the Signature Room's space?

Any potential plans for what the property could become remained uncertain as of Friday.

Crain's Chicago Business reported in March that the real estate firm Cushman and Wakefield had been retained to sell the 26,168-square-foot property, including the Signature Room restaurant, situated on the 95th floor, and the Signature Lounge, on the 96th floor.

In that same report, Crain's revealed the restaurant's owners, Rick Roman and Nick Pyknis of Infusion Management Group, extended the lease on the property through 2031.