Dream Castle Founders File for Bankruptcy

According to documents secured by The Mountain Enterprise, the owners of the popular Dream Castle Cafe and Bakery, which is closed, have filed for personal Chapter 7 bankruptcy. Glenn D. Calloway and Lorraine K. Ridley filed in Santa Barbara County on February 18, but there is no mention of the Dream Castle, LLC in the filing.

Carolyn Perry of Frazier Park, who had made a $16,500 down payment to buy the business in August, met with the couple for a non-binding mediation October 14, 2009 which was not productive, according to Perry’s lawyer, Robert E. Drescher of Valencia. Drescher said he sought return of Perry’s funds as the building was threatened with foreclosure and there were misrepresentations in the contract. Drescher added that Mary Leis (from whom the couple purchased the building and business) is also owed about $20,000 in unsecured debt.

The couple sued Perry for $103,000 for breach of contract on the lease agreement. Perry filed a cross-complaint for breach of contract and fraud.

A debtors meeting is called for April 5 in Santa Barbara.


This is part of the March 05, 2010 online edition of The Mountain Enterprise.

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