PORTLAND, Ore. (KOIN) — Peter Shore, the owner of LA’s famed Comedy Store and the brother of Hollywood actor Pauly Shore, filed a $290,000 lawsuit against the Portland-based private equity firm Sortis Holdings and its founder Paul Brenneke on Oct. 9.
The lawsuit is centered around a $250,000 investment that Peter Shore made into Sortis Holdings in August 2023. The investment, the lawsuit states, was made based on information provided by Sortis Holdings stating that the company was in the “final stages” of buying the hotel owner Ace Group International, which Shore hoped to collaborate with “on future business endeavors.” However, after Shore made the investment, Sortis' business deal with Ace Hotels fell through.
“During 2022 and early 2023, Shore and a representative of Sortis connected and discussed Shore’s plans for his company, the Comedy Store,” the lawsuit reads. “Shore expressed interest in partnering with a hospitality brand, such as Ace Hotels, to further expand the Comedy Store into other locations. The Sortis representative told Shore about Sortis’ pending acquisition of Ace Group International.”
In exchange for his investment, Shore received a convertible note and an agreement that Sortis would pay him $250,000 by Sept. 30, 2025, the suit states. However, in November 2023, Shore received a shareholder letter, announcing the termination of the proposed Ace Hotels deal.
“Shore is, as a result, left holding a Note acquired after Sortis and Brenneke made repeated false representations to him concerning the economic value of the company in which Shore was investing, and which is now essentially worthless,” the lawsuit reads. “Having repeatedly demanded — professionally and patiently — that Sortis return the money, Shore now has little choice but to proceed with this action.”
Sortis Holdings has been the subject of numerous lawsuits and news articles in recent years. The company purchased a long list of struggling Portland businesses during the pandemic, including Rudy’s Barber Shop, Sizzle Pie, Tusk, the Woodsman Tavern, Cicoria Pizza, and Sustainable Restaurant Group, which includes the restaurants Quickfish and Bamboo Sushi, OPB reports. However, the company reportedly stopped paying its bills after buying the local businesses, resulting in a string of closures and lawsuits.
KOIN 6 News reached out to Sortis for comment on the lawsuit but has not received a response.
