THE BAKER COUNTY PRESS — 3
FRIDAY, APRIL 22, 2016
Business & Ag
Tasty Bake’s problems
CONTINUED FROM
PAGE 1
Peter Johnson, former
President and co-owner
from 2001-2014 of Tasty
Bake, with his wife,
Brenda Johnson, filed
a lawsuit on March 14,
2016, also in Baker County
Circuit Court, seeking
over $750,000, from Tasty
Bake, and Cereal Hold-
ing Company, of Wis-
consin claiming among
other items, economic
losses, fraud, and breach
of the sales contract. The
Johnsons are represented
by Yturri Rose LLP, of
Ontario.
According to the lawsuit
the Johnsons had filed,
they sold Tasty Bake to
Cereal Holding Company,
in September 2014, for
$500,000, which required
Cereal Holding Company
to pay $275,000 in cash,
and to execute a secured
promissory note for the re-
maining $225,000. Cereal
Holding Company gave
the Johnsons the mort-
gage deed for the Tasty
Bake property, at 1945 8th
Street, in order to secure
the payment of the note.
In addition, the Johnsons
were also to be paid up
to $535,000 in the form
of earn-out, at the rate of
50% of the actual EBITDA
(Earnings Before Interest,
Taxes, Depreciation, and
Amortization), during the
four years following the
closing of the sale.
To assist with the owner-
ship transition, Peter was
hired by Cereal Holding
Company in October 2014,
to serve as Vice President
of Tasty Bake, for up to
one year after the sale, and
he would be reimbursed
for regular expenses, such
as for travel, and meals,
in connection with the
business. The Johnsons
claim that Cereal Hold-
ing Company breached
this employment contract,
and had not paid Peter for
expenses incurred since
May 2015, estimated at
$1,960.93.
According to the John-
sons, Cereal Holding
Company was required to
pay the first installment,
of $50,609.24, on April
1, 2015, under the terms
of the note and mortgage.
Cereal Holding Company
paid $29,625 on April 1,
2015, resulting in a short-
age of $20,984.24, causing
the Johnsons to claim a
default on the note and
mortgage, and to seek fore-
closure, with the principal
amount owed stated as
$203,250, plus interest.
The Johnsons claim that
Cereal Holding Company
fraudulently misrepre-
sented that it would make a
significant capital invest-
ment in Tasty Bake; that
it would hire a qualified
sales team, to expand the
business; and that it would
make every effort to grow,
and expand Tasty Bake.
They claim that, after
the sales contract was
executed, Cereal Holding
Company “...made little or
(no) effort to grow Tasty
Bake or (to) even maintain
Tasty Bake’s current busi-
ness.” This resulted in the
Johnsons’ estimated claim
of damages, in the amount
of $535,000.
As part of the claim for
relief, the Johnsons are
seeking to order the sale
of the Tasty Bake prop-
erty by the Baker County
Sheriff. According to
Baker County records, the
property was appraised at
$319,470 in 2014.
According to Lesaffre
Yeast Corporation’s claim,
the company provided
baking materials, including
SAF Instant Red Mix Dry
Yeast, Red Star Double-
Acting Baking Powder,
and Red Star Active Dry
Yeast, to Tasty Bake on the
following dates, which in-
cluded invoices, for a total
of $21,082.75: April 20,
2015; June 1, 2015; June
25, 2015; July 16, 2015;
and September 11, 2015.
Lesaffre Yeast Corpora-
tion claims that requests
and demands for payment
had been made for the
balance, the last one on
December 3, 2015, from
Accounts Receivable
Supervisor Jamie Olender,
including the notice to
Tasty Bake that the ac-
count would be turned over
to a collection agency, and/
or legal counsel; however,
the company had not yet
paid the balance due.
As stated in the Friday,
April 8, 2016 issue of The
Baker County Press, nei-
ther Tasty Bake President
Yasar Samarah (who is
also Cereal Holding Com-
pany Vice President), nor
Tasty Bake Chief Financial
Officer Amit Shukla had
returned phone calls to
comment on the halt in op-
eration, or the future plans
for Tasty Bake; however,
Samarah recently stated
via email that he could not
provide any comments at
this time, citing corporate
policy.
According to Illinois
State records, Samarah
is also listed, among
other positions currently
or previously held, as the
president of Merchants
Capital Corporation; the
president of Samarah And
Company; the president of
Samarah And Company
Of Chicago; the president
of Samarah Enterprises
Of Chicago, Inc.; and
the president of Samarah
Holding Company.
According to Oregon
State records, Shukla is
also listed, among other
positions currently or
previously held, as the
registered agent, president,
and secretary, of Mayur
Technosoft, Inc.; the regis-
tered agent, and president,
of Tech Atop, Inc.; and a
member of Wings Travel,
LLC.
As of this writing, there
is no indication that a re-
sponse to either lawsuit has
been filed in Baker County
Circuit Court, by either
Cereal Holding Company,
or Tasty Bake, Inc.
BY TODD ARRIOLA
Todd@TheBakerCountyPress.com
A BCVibe (Baker County
Vibrancy) meeting was
held on Thursday, April 14,
2016, 10:30 a.m., in the
Commission Chambers of
the Baker County Court-
house, in order to discuss
the rough draft of the scope
of work for the Commu-
nity Program Development
Contract Facilitator posi-
tion, and to further discuss
ways of marketing Baker
City, and Baker County.
Attendance included
Baker County Commission
Chair Bill Harvey, Baker
City Manager Mike Kee,
Baker County Economic
Development Director
Greg Smith, Smith’s assis-
tant Julee Smith, Historic
Baker City (HBC) Presi-
dent Larry Abell, Baker
City Council member
Rosemary Abell, Bake
Heritage Museum Director
Lea Gettle, Crossroads Art
Center Executive Direc-
tor Ginger Savage, Blue
Mountain Community
College Small Business
Development Center
(BMCC SBDC) Advisor
Jeff Nelson, and Baker
County Tourism Marketing
Director Tim Bishop.
Kee called the meeting to
order, and he asked Savage
to begin the discussion,
regarding the Facilitator
position description, in the
rough draft stage. Sav-
SEE BCVIBE PAGE 5
Friday, April 15, 2016 — Eastern Oregon
Prices trended generally steady compared to
week-ago prices in a very limited test. Many
producers have decided to hold on to their hay for
now, in hopes for higher prices or to feed to their
own animals. Many hay producers are sold out for
the year.
Tons Price Range Wtd Avg
No new sales recently. Two week ago results were:
Alfalfa —Large Square Good
400 150.00-150.00 150.00
Alfalfa / Orchard Mix —Small Square Premium
10 195.00-195.00 195.00
USDA Market News Service—AMS.USDA.gov
— Cattle Market Report —
Wednesday, April 13, 2016
Vale, Oregon
Cattle sold through the auction: 1239
Steer Calves
300-400# Bulk 189.00 - 204.00 Top 205.00
400-500# Bulk 177.00 - 211.00 Top 212.50
500-600# Bulk 167.00 - 192.00 Top 196.00
Heifer Calves
300-400# Bulk 167.00 - 185.00 Top 188.00
400-500# Bulk 166.00 - 180.00 Top 181.00
500-600# Bulk 151.00 - 161.00 Top 163.50
Yearling Steers
600-700# Bulk 156.00 - 177.00 Top 178.50
700-800# Bulk 139.00 - 153.00 Top 157.75
800-900# Bulk 135.00 - 141.00 Top 143.00
900-1,000# Bulk N/A Top N/A
Yearling Heifers
600-700# Bulk 133.00 - 148.00 Top 151.50
700-800# Bulk 126.00 - 133.00 Top 135.00
800-900# Bulk N/A Top N/A
900-1,000# Bulk N/A Top N/A
Thin Shelly Cows 53.00 - 67.00
Butcher Cows 69.00 - 81.00
Butcher Bulls 64.00 - 84.00
Stock Cows Yng. N/A
Pairs. 800.00 - 1350.00
Stock Cows Older. - 900.00 - 1375.00
BCVibe
meeting
focuses on
grants
age said that grant writer
Kat Davis had been given
a copy, and that BCVibe
would need to match the
grant funding, on a one-to-
one ratio. Though BCVibe
felt $5,000 total would be
enough to fund the position
(making BCVibe’s con-
tribution $2,500), Savage
said that Davis recom-
mended more.
Kee said he didn’t real-
ize it would be a matching
fund grant, at a one-to-
one ratio, as he had heard
$5,000 would be provided,
but he said BCVIBE could
provide $3,000 without
an issue, bringing the
total funds to $8,000, if
needed. Harvey also said
he thought it would be a
matching, one-to-one ratio
grant, as did Gettle, who
said she understood it to be
for a total of $6,000, with
$3,000 from BCVibe.
Rosemary said that,
typically, The Ford Family
Foundation grants are on a
matching, one-to-one ratio
basis, and she cited those
dispersed to Historic Baker
City, as an example.
Savage asked Kee about
the funds, and he said, it
will work, whatever the
actual total will need to
be, and that the matching
funds will come from a
combination of sources,
from the City.
— Weekly Hay Report —
ProducersLivestock.com
541-473-3136
— Log Price Report —
Price per 1,000 board feet: Northeast Oregon
Todd Arriola / The Baker County Press
The second regular BCVibe meeting this year was
held at the Courthouse last week back to back with
the Economic Development Council meeting.
Currently the local log market is flooded with
fire salvage logs. The log buyer for Malheur
Lumber Co. stated they have all the logs they
need under contract and are not accepting any
new purchases. BCC/LLC of La Grande has
receive so many burned fire salvage logs they
are no longer accepting logs at the La Grande
log yard. Any additional pine logs have to be
delivered to the Elgin Log yard cut in plywood
lengths and to a 8 inch top. For these pine
logs cut in plywood lengths, BCC is offering
$280.00/mbf. They are also paying $410.00/
mbf for Doug Fir & Western Larch. For White
Fir they are offing $310.00/mbf. At the Pilot
Rock Saw Mill BCC is offing $360.00/mbf for a
12 to 15 inch top, for 16 to 19 inch top $400.00/
mbf & offing $425.00/mbf for 20 inch plus top
Courtesy of Arvid Andersen,
Andersen Forestry Consulting
— Precious Metals Report —
Price per ounce, USD
Gold: $1,255.60
Silver: $16.98
Platinum: $1014.66
Palladium: $583.52
Bloomberg.com
— Ag Commodities —
Corn: $357.00/bu/USD
Wheat: $472.50/bu/USD
Soybeans: $904.25/bu/USD
Oats: $185.00 bu/USD
Rough Rice: $9.79/cwt/USD
Canola: $480.20 CAD/mwt
Live Cattle: $120.75/lb./USD
Feeder Cattle: $150.20/lb./USD
Lean Hogs: $79.00/lb./USD
Bloomberg.com