From tie-dye to tied up… in court: Foster sued

The co-owner of a Corydon bakery that closed its doors amid accusations of mismanagement is now suing tie-dye maven and former business partner Pepper Foster for nearly $200,000.

Pennyloaf Bakery, known for its sourdough bread, opened its doors at 858 Corydon Ave., in 2015, and was purchased by Foster and accountant James Fiebelkorn in June 2022, both owning 50 per cent of the business.

But issues rose quicker than dough with baker’s yeast; staff told the Free Press they had quit in response to concerns about Foster and his wife Vanessa Foster’s management of the business, and the shop closed in December 2022.

A lawsuit filed last month alleges that Fiebelkorn contributed over $193,000 to the business’ account with the agreement that Foster would contribute an equal amount, but said he has “neglected, failed or refused to make any contributions to service the debt on the loan.”

Fiebelkorn said even with a new bakery renting the building, he’s paying $10,000 a month to keep up the mortgage and other costs.

“It’s a significant ask every month, and I’ve been paying it because I’m the one that signed for it,” he said Tuesday. “It’s just an unfortunate situation.”

Fiebelkorn, represented by Trippier Law, is suing for the cost of the investment, along with “other special damages in an amount to be proven at trial.”

Foster did not respond to requests for comment Tuesday.

The suit is the latest in a number of claims of financial mismanagement against Foster. He and his brother, Chip Foster, were known for a 1990s cartoon series and surf-inspired clothing line before announcing they would be taking over local brand KUB Bread in 2023 after former owner Ross Einfeld announced the 99-year-old bakery’s closure.

Einfeld and several other bakery owners (who told the Free Press Chip Foster was not involved with their business dealings) have since accused Pepper Foster of refusing to pay bills owed. At least one, Upper Crust Bakery in Selkirk, has since closed.

Einfeld told the Free Press in September he was planning to sue Foster to get the KUB brand back, but nothing has been filed in court yet.

Last year, the Royal Bank of Canada filed a lawsuit against Foster for defaulting on a loan of nearly $700,000 in June 2024. He was ordered to pay back the entire amount, interest and court costs.

Fiebelkorn said he does not know if Foster has been served the lawsuit yet, but his goal is to get the court to sign off on removing Foster’s 50-50 share of the business, allowing him to refinance the building or take other cost-saving steps.

He has been in contact with other former business partners of Foster and said many regret their decision.

“When you’re dealing with Pepper, you hear all kinds of things, and some of the things he’s done is just despicable,” Fiebelkorn said.

malak.abas@freepress.mb.ca