Bankruptcy Filing Reveals Lawsuits And Arrest Linked To Tsunami Ownership

New details are emerging following the recent Chapter 11 bankruptcy filing by the ownership group behind the Tsunami sushi restaurant chain, a longtime favorite across south Louisiana.

A report from The Advocate by Kristin Askelson, with contributions from reporter Adam Daigle, outlines a series of legal issues involving the owners of the business. The disputes include lawsuits among business partners, an arrest tied to one of the owners, and past controversies involving restaurant operators connected to the company.

The bankruptcy filing covers four operating companies tied to Tsunami restaurants located in Lafayette, Baton Rouge, and New Orleans.

According to the company’s attorney, the restaurants collectively reported between $2.5 million and $3.5 million in debts as part of the filing.

Lawsuit Alleges Owners Conspired To Push Partner Out

One of the most significant disputes involves a lawsuit filed about 15 months ago by Baton Rouge restaurant operator Chad Hughes against fellow owners Connie Hargrave of Lafayette and Sarwat Gad of Broussard.

In court filings, Hughes claims Hargrave and Gad worked with Hargrave’s son, Brandon Hargrave, to push him out of the business and terminate his ownership interest.

Hughes alleges Hargrave stopped paying rent to Hausu 412 LLC, the entity that owns the Tsunami building located at 412 Jefferson Street in downtown Lafayette.

He also accused Gad of emptying a bank account connected to Lit Parking, which operates the nearby parking lot at Garfield and Buchanan streets.

According to the lawsuit, Hughes later received a letter instructing him to stop participating in company meetings or contacting management.

Brandon Hargrave is currently listed as the manager for all four Tsunami locations but is not named as a defendant in the lawsuit.

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Arrest And Past Restaurant Controversies

Court records also show Hughes was arrested in December on charges of theft and issuing bad checks.

Authorities say the charges stem from the alleged purchase of a trailer and dumpsters valued at about $20,000. Investigators say Hughes wrote a check for the purchase that later bounced due to insufficient funds and that the seller could not reach him for months afterward.

Hughes has also faced other legal disputes tied to Baton Rouge businesses.

Last year, Baton Rouge developer Hank Saurage filed a lawsuit claiming Hughes failed to repay loans connected to several businesses including Boudreaux & Thibodeaux’s, the now-closed City Bar, and Bengal Taproom.

Separately, The Advocate noted Brandon Hargrave previously operated Walk-On’s franchises before that agreement was terminated in 2019 after he made a racist Facebook post.

Restaurants Remain Open During Bankruptcy Process

Despite the lawsuits and ongoing legal issues, Tsunami restaurants remain open while the ownership group works through the Chapter 11 bankruptcy process.a

The bankruptcy petition was filed in the Middle District of Louisiana just one day before the civil lawsuit between the owners was scheduled to go to trial.

Under Chapter 11 protections, the business can continue operating while working with creditors to restructure debts and develop a financial recovery plan.

Court proceedings connected to both the bankruptcy case and the ownership disputes remain ongoing.

See the full story at The Advocate here.