Beloved bagel shop Detroit Institute of Bagels is closing once again, and this time it may never be the same.
After closing its Corktown location in 2020 following seven successful years, owner Ben Newman reopened the shop in early 2023 in Detroit’s Core City, taking over the former Ochre Bakery space.
However, on July 14, Newman sent an email to employees informing them that he had sold Detroit Institute of Bagels to Philip Kafka, a real estate developer known for repurposing vacant buildings in the area. And, he would be taking over the next day, reported BridgeDetroit.
Due to Kafka’s business reputation as a “gentrifier” and his public political beliefs as a “Zionist,” more than half of the staff quit within a week. The following Monday, Kafka laid off the remaining employees, stating that “the business can’t operate without the key participants who have recently resigned.”
Former employees told BridgeDetroit that the bagel shop was a great place to work, but described Kafka’s purchase as a “takeover,” noting that things immediately took a turn for the worse, including changes being made without communication and no effort to meet the staff.
Kafka, however, says he made many attempts to schedule group and one-on-one meetings with team members following Ben’s notification of ownership transfer.
Previous owner Newman stated that, after funding the shop with his personal savings and working unpaid for over a year, he sold to Kafka believing it was the most stable choice to save the shop and people’s jobs.
Unfortunately, that wasn’t the case.
Future plans for the Detroit Institute of Bagels have not yet been announced.
