In April of 2021, Knitting Factory Entertainment CEO Morgan Margolis partnered with J.B. Moresco and Lisa Elin to purchase the long-running bar and music venue in Pioneertown.
Margolis, Moresco and Elin formed a group with Margolis providing the financial backing for the sale. According to Margolis, within weeks of purchasing the venue Lisa Elin and J.B. Moresco shut the Knitting Factory CEO out.
Margolis responded by filing suit against Moresco and Elin on June 23, 2021. According to a press release from Margolis’ legal representation, after three years of delays and legal wrangling a Los Angeles jury has ruled in favor of Margolis, wresting control of the venue away from the former partners. Moresco and Elin are also ordered to pay “millions” in damages for breach of contract and intellectual property theft.
The Los Angeles Superior Court also ruled in favor of the Margolis Group on all remaining claims, finding that the defendants engaged in “breaches of fiduciary duty,” “wrongful conduct” and “breached the Partnership Agreement in multiple ways.”
On Friday, December 20th the defendants were ordered to immediately hand over booking, operational and financial control of the music venue and bar to the Margolis Group.
In that same press release, Morgan Margolis is quoted as saying that the group is “excited to move forward with what we set out to do three years ago when we bought this iconic venue that is so special to so many people. We look forward to engaging with the community at large as we fully embed ourselves within the high desert community to honor Pappy + Harriet’s rich history starting with Pappy and Harriett and continuing at full speed through Robyn and Linda. We hope to carry their legacy forward.”
Robyn Celia and Linda Krantz had previously purchased the iconic spot in 2003 from Harriet Allen and her husband Claude “Pappy” Allen, who founded Pappy & Harriets in 1982. The famous venue sits at the beginning of Pioneertown where it began its life as a cantina in Western movies that were filmed there and in the hills of Pioneertown in the 40’s.
The Knitting Factory is a New York concert venue that was first opened in 1987 and has since expanded with venues and concert houses across the United States.
Links to court documents:
Previously reported:
