Letter from Bob Martin opening appeals:

Dec 29, 2008

The loss of Mory's would be a tragedy. Somehow it must be saved. 
New membership arrangements are necessary, and all graduates and
 undergraduates should be solicited. Centrally important would be
edible food, and the restoration of all memorabilia to the walls,
ceilings, wherever. Since it is, as a renowned member of the great Class
of 1954 and a Whiff has stated, "the Mother Church of the Whiffenpoofs!" 
perhaps the Whiff Trust, Alumni Group, or whatever its precise name is,
could undertake to buy Mory's from Yale. I am certain that many, myself
for example, would be delighted to join such an effort. Then get Wayne
Newton back from The Lawn Club, create a new menu, and generate
some excitement about why Yale would not be Yale without Mory's.
I am confident that saving Mory's can be accomplished if a core group
 can be created, and then it reach out broadly across Alumni. How about
the Class of 1954 buying Mory's?

Bob.

Jan 26, 2009

Sent: 1/25/2009 7:27:03 PM

 

Hi Bob

 

No apologies required. I did receive all of your e-mails, and I was happy to receive them. I am delighted by the energy and interest shown by the great Class of 1954 to save and revitalize Mory's. As you can understand, as President of the Whiffenpoof Alumni, I too am dedicated to saving Mory's. That is the principal reason I agreed to join the Mory's Board two years ago when invited to do so. It was clear then that Mory's was headed in a downward trajectory, but I needed to get up close to understand what the problems were and therefore what the solutions might be.

 

But how to save Mory's is the question. Over those two years I gave a lot of thought to whether the Whiff Alumni should organize its members to, in some fashion, buy or "take over" Mory's and make it a permanent Whiff home. But, if it were to do so, the Whiff Alumni would be in the business of running a restaurant, particularly one that has operated at a chronic loss? I wasn't convinced that the Whiff Alumni should or could take on that responsibility. Further, over time I came to see that Mory's problems were the result of a well-meaning but dis-functional and badly-led Board, an ineffective management, poor food quality, indifferent service, and an unwelcoming culture that did nothing to attract patronage. These could be fixed, if there was a willingness to do so. But after observing things for a period of time, I came to the conclusion that the "Mory's situation" (like General Motors) would have to run its course before Mory's could be reformed.  That would be the only way the organization would/could make the changes necessary to effect a turnaround.

 

We are now at that point ..... and a bit beyond. Mory's has run out of cash; it's Board President has resigned; management, including the chef, have been terminated; and importantly a new group (we call it BOG2 for Board of Governors 2) has been created to manage Mory's through the close down, with responsibility for all decisions in the restructuring of Mory's during the transition. I am a member of BOG 2. It is headed by Doug Rae, a professor at the Yale School of Management and who, as Chairman of its Board, was responsible for turning around the New Haven Lawn Club. The job of BOG 2 is to enlist the best people to BOG 2 to help put together a successful business plan, and then to select the best people to execute it. Recently we added two additional members to BOG 2: Jonathan Ingham '65, a former President of the Yale Club in NYC, a fellow Whiffenpoof,  and a retired venture capitalist with fund raising expertise. And we've added Bob Emerson '68 who has run a chain of successful restaurants. We also benefited greatly from a visit to Mory's by the manager, banquet manager, chef, and former President of the Yale Club of NYC, who volunteered to review Mory's situation and offer help and suggestions.

 

In my estimation, BOG 2 is making significant progress toward putting together a successful business plan which we hope to have completed in the next few weeks. We have also had important meetings with Yale, in which they have vowed to be help us in solving some of our problems. But they appear to have no interest in getting involved in Mory's, don't want to take it over. They want Mory's to solve its own problems, and to find a way to run itself successfully. If they can help us get there, they will. In the meantime the Friends of Mory's campaign, which solicited funds for the "new" Mory's but without a new business plan, as of today has raised $106,000 in primarily small contributions, which will help finance Mory's through the transition. Although the success of the turnaround  is not a certainty, the Mory's Board is now confident that it can re-open in the fall, and we're planning for a September opening. (see the attached article that appeared yesterday in the Yale Daily News.) 

 

I think you should continue to build support for "saving Mory's" among your classmates, and possibly in conjunction with the Whiffenpoof Alumni, but recognize that the current BOG 2 believes it is making the right moves to accomplish just that. Mory's will need some serious money for necessary renovations and start up working capital (which I think can be raised); BOG 2 is organizing to start a more serious fund raising once a new business plan is in place that can be shown to potential donors. I see no immediate need for anyone to "buy Mory's" (which in effect substitutes the new owners for the current BOG 2). But I would be watchful and ready to move forward if BOG 2 looks not to be accomplishing its mission.

 

Please feel free to distribute my response to members of your group. What a great outpouring of interest in and support for Mory's they represent. Consider me one of them; we all have the same objective. I'd be happy to talk with any of them further. I can be reached at this e-mail address or by telephone at 212-369-7059. 

 

I would also encourage any of them to make modest contributions to the Friends of Mory's at this time. All funds raised will be used to support and re-start a new Mory's. I hope I have persuaded you that "things are different" and that the time is right to offer support for the transition. In time we will be soliciting larger contributions when we have a business plan to show potential donors. And, as I said in our recent phone call, we'll see if it is possible to organize Mory's in such a way as to create a 501 © (3) organization to which tax-deductible contributions can be made. (No promises there.)

 

If any of your group would like to make a contribution to Friends of Mory's (and some already have), they can send a check, payable to Friends of Mory's, to Friends of Mory's, 306 York Street, New Haven, CT. 06511-3645.   

 

Thanks for your interest.

 

Best,

 

Dennis Cross

 

 

P.S.

 

One misconception I gleaned from the exchange of e-mails you sent me. Yale does not own Mory's or any of the real estate. It is owned by a Trust. However, should Mory's cease to operate "as a club along substantially the same lines" (see explanation below), the property would revert to Yale.

 

A friend recently asked me who owned Mory's and I sent him this reply:

 

 

In 1939 title to the real estate which we recognize as Mory's was conveyed to a Trustee (currently Bank of America) pursuant to a Trust Agreement "so that said premises may be available for the use, occupancy and benefit of Mory's so long as Mory's continues to be operated as a club along substantially the same lines as at the present time".

 

Section 11 of the Trust Agreement provides that "upon the termination of the corporate existence of Mory's ... or if Mory's shall cease to operate as a club along substantially the same lines as at the present time, the Trustee shall transfer and convey all property both real and personal then held by the Trustee under the provisions of this agreement, to Yale University, absolutely and in fee simple, and all of the trusts imposed and created by this agreement shall thereupon cease and terminate."

 

Mory's the corporation has the right to use the premises to operate the club, and does not pay rent. It is, however, responsible for paying all the expenses of operating, maintaining, and improving the premises.

 

Hope this helps,

 

Dennis  

12/30/2008

 The building is in a trust which I gather Yale has some control over so it 
can't be bought unless Yale agrees and Bank of America cooperates. 
The board has  been reformed and Tyler has quit as Pres - lots going on. 
The need for money is desperate and immediate - probably about $500k.

I have no idea what the board is doing personally. They have fired all but
union people and controller - closed for the holidays, but could be
permanently. The board is being run by 5 people now with Dennis Cross
being one of them. We are away in Vermont , back Monday. We should
have a conference call of those interested with the new President who
seems capable. I know people want to help - it needs organizing! 
Happy New Year, Russ 

 12/30/2008 

Dear Russ,

 Thanks for your good messages, and since first things should be first--
Happy New Year to you and Debbie!! (And, of course, to everyone else
as well!)
You are absolutely correct--people do want to help save Mory's.  Early 
generation of strong interest with a core group to lead the way sounds
 just right. Such a group should include locals (e.g. you , Carl Loucks,
and a lawyer, perhaps a couple more),  some representation from the 
Whiff Trust (that makes you double hatted, and you should be able to 
double hat Dennis Cross), the Class of 1954, so important to Yale, 
should be a part of thiseffort (Dick Gilder has indicated he is prepared
 to be involved with Carl in the lead), and a few other heavy hitters.

It should be possible to convince Yale that it does not want to carry
the stigma of killing Mory's, especially if the saving effort is spearheaded 
 by a number of Yale's greatest benefactors.  Is anything more than
 money needed to convince Bank of America?  Admittedly 500K is a 
bunch of money, but if enough people put in some over a five year
period like Yale Tomorrow and Reunions it should be feasible. Logically
gathering a core group is the first step. Then developing  a plan as to
how best to proceed.  Next ensuring that a 501c3 is established.  
After that taking informal soundings to get a sense of how broad a 
swath of alumni are needed to cobble together the necessary money 
pot.  Then move forward with Dennis Cross and the new Mory's Board,
and with Yale (if David Swenson is very supportive that should be of
immense help).

Does that sound about right? 

Bob.

  1/12/2009 

Yegods! It's national news! We need to do something fast! 

1/12/2009  

Paul Pesek's Proposal

MORY's™ LLC

Consider incorporating a Limited Liability Company (LLC) that would buy Mory’s™ for $500,000 (or more and run it with a staff. The corporation would change the operation with the objective of making a profit for the investors. Memberships could be eliminated etc. Joel Smilow and his staff at Daniel have great experience with restaurants and could be key advisers. The General Manager would report to the Board of Directors.

I suggest that 500,000 units (shares) be offered at a
 price of $1 per unit with a minimum investment of 
$5,000 to limit the number of partners to a workable
group. This money would purchase all the assets
 of the current organization and provide operating funds.

The advantage of an LLC is that the partners can write 
off tax losses annually in proportion to their % of
ownership in the initial stages.

Profits are distributed proportionately to the partners. 
The partners would be certain to use Mory’s™ as
frequently as possible because of their investment.

The offer could be made in stages, initially to all
ex-Whiffenpoofs, then to all Yale graduates and 
faculty, and if not fully subscribed, then to the general
public. The pay out to the investors could be
the sale of the restaurant to another entity
(Not MacDonald’s™!) or to new investors.  

The major question is: Can Mory’s™s be made profitable with better rules and management? The  Mory’s™s Brand must have great value. Could it be expanded to other campuses or to New York with local heroes’™ photos?

Paul

Bob - everyone agrees that Mory's must be saved!! (or almost everyone).
They seem to need about $500,000 to get through the next period. 
It needs organizing. The have a new board of 5 people in this interim
period during which Mory's could fold or be reborn. I think it best to contact
 Dennis Cross directly who is on the new board (and the old one) and head of the 
Whiffenpoof alumni and either send him money (which appallingly is not
 deductible at this point - we have urged them to set up at 501c3 immediately).
 I am away in northern Vermont  this week, back Monday. They fired everyone
 except 4 union people and the controller. Cheever Tyler resigned as President
of the board and as a director. The new President looks ok to me. The building 
is controlled by Yale and is in a trust run by B of A. If Mory's folds the building 
goes to Yale. I don't know if anyone has tried to get Yale to help, or if they
 would consider selling it .I do know David Swenson is very supportive personally. 

Happy New Year, Russ Reynolds


Jan12, 2009

I suggested to Carl Shedd that he put Paul's idea for a Mory's LLC on our Class website as well as the NPR piece.  Paul's idea seems to me to be a possible way to begin to work out a way to save Mory's.  I would think that it would be possible to get the number of people (100) that Paul noted at $5,000 per to raise the $500,000 from among 1954, the Whiff Trust, others we can contact from other classes who do not want to see Mory's die.  I would be prepared to be among the number at $5,000, or even perhaps $10,000.

What do you think?

 Bob.

 1/13/2009

Russ quickly replied to my message about Paul's LLC idea in which I noted
that I would be prepared to join the number at $5,000 or perhaps even $10,000
by saying:  "I agree and would do the same.  I am trying to get them to rush a 501c3."

If we can get a few more to commit we should gather additional suggestions to form a list to be in touch with.  It should include 1954, Whiff alumni, and other classes.  For example, we have in this area Putney Westerfield (1951) a very strong Yale supporter, Bill Stone (1952) a former Whiff, and Bill Draper (1950) 
who was earlier on the Corporation.

 How about Jon Bush (1953), etc., etc., etc.

I think we can do it.  I noted on the NPR piece a comment from a member of that SOB gang (Society of Orpheus & Bacchus) that they practiced in Mory's on Tuesdays (the Whiffs, of course, on Mondays).  The ladies singing group, Whimn' Rhythm (sp?), is in Mory's another night.  There are other groups, clubs, faculty departments, just friends, as well as alumni, who ought to be enticeable to come to Mory's occasionally, if not weekly, with a little PR effort and some edible food.

 For God, for country, for Yale, & for Mory's!

Bob.

January 13, 2009

 1/13/2009

I hate to be contrary, but I think we should get the class of 1954 AND 
the Whiffs to save Mory’s immediately. This is a last chance opportunity
I find it hard to believe that Getman is off golfing! Maybe those in
New Haven are too close to it. Mory’s stands for something very special.
I wonder where Dennis Cross is on this and I will call him tomorrow as
he has the keys to the Whiffs 800 members. As I mentioned, I have also
written Rick Levin and am pretty sure I'll get a response soon. I know
directly that several people are willing to tsp up. What we need is an
organized and credible approach fro the board. Maybe we should make
a tender offer and just use it as a museum.

 Russell S. Reynolds, Jr.

1/13/2009

Dear Russ,

 I agree with you entirely.  Mory's stands for something very special--Yale tradition. Let us proceed to get those in 1954, those in the Whiffs, and any others similarly inclined moving smartly forward to do the needful to save Mory's.  Again, let's start getting a list of those likely to want to be involved, and then quickly be in touch.  Who else should be included from 1954?  It would be useful to add at least a small group of non-1954 ASAP. 

Russ, you seem to have the best oars in the water.  If David Swenson is positive I would think that should count well in terms of Yale.  If the Whiffs
are willing, and I would imagine that a large number will be very positive, we should be well on the way to Paul's LLC suggestion. 

 In any event, this effort is more than worth doing, and, indeed, achieving success with it.

 Bob.    

1/15/2009

 Carl,

 I agree that you should include some real numbers in your posting of my suggestion. I believe that there is a nucleus of a significant business proposition because of Mory's name.

The Mory's "Brand" may be a terrific asset! It is the best known  name in college restaurants and has been recognized by several papers and radio. The restaurants or franchises could play  the Whiffenpoof song every hour on the hour! The real business proposition is the "Brand" modified to include all colleges that are near the restaurant. How about one in Greenwich ?

Paul

 Jan 16,2009

Bob - here are my thoughts.

Facts/Assumptions:

• Mory's doors are closed. The only people being paid are the union and the controller.
• There is an immediate money issue ($500,000? I do not know. I have only words from day one, no financials on which to base any assumptions).
• Time is of the essence, but there is never reason to be too hasty.
• Mory's is a Yale institution, a gem that must be preserved.
• Yale has to have input, which complicates any solution.
• I am told the union can't be either ignored nor thrown out because of Yale.
• Mory's can be viable - this is not rocket science
• The Mory's Board has in effect "abdicated", turning resolution over to four or five individuals initially (including Dennis Cross, President of the Whiffenpoof Alumni, Inc and headed by a professor at the School of Management, who is said to have been the key person is guiding the recent turnaround at the Lawn Club), tasked with the responsililty of identifying and assembling a group of individuals and coming up with a Mory's rescue plan - short and long term. I have shared my thoughts on the situation with Dennis.
• I have no doubt there is interest, money and talent in abundance in the Yale community to save Mory's, provided the group comes up with a decent plan.

My Thoughts:

• The present work group must be expanded/redone. It must be headed by someone new - an alum (preferably for me a Whiffenpoof because of the special connection with Mory's), who is known and respected in the community, has demonstrated business leadership capacity, is dedicated to Yale and is financially strong. If he has the time, Russ would be my candidate. The group must include some holdovers like Dennis and the professor. Local presence is necessary. Carl would be a natural if he has the time and inclination. The members need to include graduates especially with financial/marketing/ entrepreneurial skills - people that know how to run an organization and make money.
• I understand present legal counsel's expertise is labor law. This might be OK, but change of counsel should be explored.
• A PR pro should be retained (or found amongst nearby alumni) to insure the best communications possible amongst all concerned during this crisis period.
• I would like to see official Whiff involvement restricted to Board membership along with weekly singing (every Monday) by the current group. I believe it would be a mistake for the Whiffs to take ownership or even have an office (rented or condo) in the building. I am pleased that other singing groups perform at Mory’s. This should help in attacting customers.
• No matter what form it takes, I am not in favor of Mory’s growing beyond New Haven any time in the near future. Just be the gem it is for Yale.
• Ongoing Mory’s will require support from undergraduates but likely mainly from its alumni. The work group must develop strategies to insure that this happens.
• It appears vital in this crisis that a Class like ours step forward to provide leadership and participants for any rescue, because someone has to take the bull by the horns, even if the long term solution must involve the entire Yale community

Bruce Meacham

Jan 16, 2009

To clarify a few facts:

Robin Soltesz, comptroller, is the ONLY Mory’s employee being paid. Heard this from her.  She told a friend she is day to day till a decision is made.  
Lucille (Forgot Last Name} waitress for 15 years called and said she is drawing unemployment, which pays her rent and gives only $300 addition dollars to live on.  Billy Farrington and I have had several phone discussions. He retired when Mory’s closed after FORTY YEARS service as waiter. A group was planning a retirement party for him but Chris Getman said there was no money. He would not entertain a dutch treat dinner.  Barbara and I are having our own lunch with Billy.  Billy was the last of the old school waiters at Mory’s. 

Carlton Loucks

Jan 16,2009

Gents – I called Dennis Cross this afternoon and got a mildly encouraging update on Mory’s. Tom McCance’s letter to “ Friends of Mory’s “ has produced $90k so far. The interim acting board is putting a business plan together quickly and they have added 2 new members, John Ingham, a Whiff, and  Bob Edwards, ’68, a former restaurant executive. They have had an encouraging talk with Bruce Alexander who manages Yale properties and he is saying the right thing regarding helping with the building maintenance and the union. They have not yet set a reopening date but are quietly thinking about September 1. They do not think the Whiffs will go away. I have been pushing Chris Getman, the Pres, to form a 501c3 and Dennis did not know where that stands. It is absurd not to do that. Based on what Dennis said I think they are doing the right things and they definitely have new and rejuvenated leadership. He said if they do not accomplish their objectives, he will ask us to buy it but they are not at that point. I think that sending contributions to Mory’s now is a good idea and I am doing that modestly, but not as much as I would do if it were deductible. Anything anyone wants to do now will supply them with strong moral support which they need.

 Russell S. Reynolds, Jr.