Battle of central Ohio bagel shops ends as owners reach settlement
Jan 27, 2025
COLUMBUS, Ohio (WCMH) -- A multi-year dispute over Columbus' bagel market has reached a settlement, pending approval in U.S. Bankruptcy Court.
A legal fight between HB3 LLC, the family company behind Block's Bagels, and Jeremy Fox, former Block's business partner and owner of Fox's Bagel & Deli, has reached a settlement, ending a battle of the bagels that has persisted since 2022. Both parties agreed to Fox paying $9,791 in unpaid goods and a $290,000 unsecured claim.
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Longtime central Ohio shop Block's Bagels sued Fox after he rebranded two Block's locations he operated, renaming them Fox's Bagel & Deli. According to court documents, HB3 accused Fox of intentionally breaching a license and product supply agreement establishing Block's as the sole supplier of bagels, cream cheeses and other deli items to Fox's Bexley location. Fox and HB3 had a similar, oral agreement for Fox's stand at North Market, legal documents state.
Fox owned and operated two Block's branded locations under the company Fox's Food. Court documents allege Fox created Sammy's Bagels in 2021, which he then used to purchase Block's direct competitor in 2022, Sammy's Foods. Fox then sold Fox's Food to FRG Enterprises, which Fox owned 75% of.
After selling his company to himself, he fired his employees from Fox's Foods and rehired them under the new company. Block's accused him of doing all of this to save money by supplying his locations with Sammy's Bagels products. According to court documents, Block's asserts they did not know about Fox acquiring Sammy's Bagels and claimed Fox's actions violated their agreements.
Initially, Block's sued for $1.3 million in damages, and Fox countered with $9,791 in unpaid goods. At one point throughout the legal battle, Block's even secured a temporary restraining order against Fox requiring him to continue purchasing exclusively from Block's as they awaited legal closure. Watch previous coverage of the lawsuit in the video player above.
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The settlement is pending approval in U.S. Bankruptcy Court, as Fox filed for Chapter 11 bankruptcy in December 2023 for the FRG company, moving the case out of civil court. This type of bankruptcy filing allows a debtor to reorganize its company to help settle debts while continuing to operate.
Block's was founded in 1967 by Hal Block, who died earlier this month. Both Block's and Fox's Bagels & Deli posted on social media about Block's passing, with Block's closing to attend the service and Fox expressing his condolences.