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Ned Kelly's owner leaves Duffy McKaw's
By Michelle Koetters
mkoetters@pantagraph.com
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BLOOMINGTON -- The owner of Ned Kelly’s Steakhouse has quit his job at another Bloomington restaurant because his presence was bad for business.

John Schmitt resigned from Duffy McKaw’s Tropical Grill in east Bloomington at the end of September. In recent weeks, he had received negative attention for not paying about 50 Ned Kelly’s employees when the business closed. Seven of those employees have since filed complaints with the Illinois Department of Labor.

“The number of calls, the disturbance my presence was (creating) … I needed to remove myself,” Schmitt said.

“I’m not involved in the operation. I’m gone. I’m no longer a manager. I’m no longer paid.”

After Ned Kelly’s closed in mid-August, the unpaid workers received a voided final check and a letter from Schmitt explaining the company’s bank account did not have sufficient funds for the entire payroll.

Schmitt, meanwhile, had moved on to a manager’s position at Duffy McKaw’s.

Negative attention followed.

The tropical-themed bar and grill at the Links at Ireland Grove golf course heard from people who didn’t want to patronize Duffy’s because Schmitt was an employee, said Tripper Phipps, a partner at Duffy McKaw’s. He declined to comment on the specific impact on business.

“We just want people to know John Schmitt is not associated with Duffy McKaw’s, and the local business people here in town … are excited about our concept and are excited about what it provides to the community, and we’ll strive to achieve our success here,” Phipps said.

Nine Ned Kelly’s employees also found kitchen, hostess, server and management jobs at Duffy McKaw’s, Phipps said.

Schmitt submitted his resignation letter Sept. 20. While he continued with some financial work from his home in Champaign, he said his work is essentially complete now.

He is now looking for other employment, possibly in the restaurant business.

Schmitt’s wife, Cynthia, also had an investment in Duffy McKaw’s through a minority partnership. However, the current ownership, including Phipps and others in the Links at Ireland Grove’s investment group, is in the process of buying that out, Phipps said.

Phipps is unsure of the time frame for completion, but it developed after Schmitt resigned and his wife agreed to sell her portion of the investment.

“We’re severing all ties,” Phipps said.

Ned Kelly’s former employees are still waiting to see if they’ll ever see the money from their last weeks there.

“That was not my intention,” Schmitt said of the employees’ paychecks. He declined further comment.

Of the seven employees that have filed complaints with the state labor department, one has been closed and six are pending. Further information on the closed complaint was not immediately available. The department is also expected to make any decisions on the pending complaints within 45 days, a spokesman said Thursday.

The Bloomington location was the last of four Central Illinois Ned Kelly’s restaurants to close. Ned Kelly’s Ventures LLC filed for and received Chapter 7 bankruptcy for its Peoria and Springfield eateries, but Schmitt would not say if a bankruptcy case was ahead for Bloomington. A location in Urbana has also closed.

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Reader comments on this story - 58 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

To Todd the Bod wrote on Oct 15, 2007 12:37 PM:

" It's not uncommon for entrepreneurs to do many things at once. We do it all the time, which is why you bring in expertise. Tripper was our expert, and he brought John along to help him because Tripper also has a huge catering business. No money was paid into the Duffy's restaurant. We owned all of the underlying land, the parking lot, etc. That served as our equity in the venture. You see, its not that hard to understand. "

Todd the Bod wrote on Oct 15, 2007 4:00 AM:

" To Simple Truth: You say he was brought on before Ned's closed and you had no idea what was going on with Ned's. Bull. Does it not seem odd that someone who owns a restaurant would come to your restaurant to work as a manager? And can someone explain to me how he didn't have the money to pay his employees but his "wife" had the money to buy into a new business? I would love to hear your response to that. Thanks. "

To; Jimmy wrote on Oct 12, 2007 8:55 PM:

" Tripper was a manager out at Ned's several years ago. He left to start his catering business over 5 years ago. "

Happy Hour wrote on Oct 12, 2007 5:09 PM:

" Duffy McKaw's is a great new place in town. Who cares who goes there, State Farm people or not. Everyone is the same. The point of the place to sit and relax at dinner with friends, maybe have a couple of drinks and enjoy yourself. If you haven't been there, I would highly recommend going. "

RE: "Jimmy" wrote on Oct 12, 2007 3:44 PM:

" A former employee said that Tripper was a managing partner of Ned Kelley's. What gives? Who's responsible for paying Ned's employees? "

Fridge wrote on Oct 12, 2007 3:18 PM:

" I hope the owner of Duffy's reads this... Turn down the temp on your beer fridge, and get a cooler for the beer you're storing. too many warm beers has made me not want to go back. i will try again soon, and the beer had better be cold. "

Crazy... wrote on Oct 12, 2007 3:17 PM:

" This newspaper is the source of all the negativity brought to duffy's. The owner(s) now have to respond on the blog to defend their business decisions. Great job to bloggers as well, you got your man fired. Really helped out the former employees of Ned Kelly's. Another pat on the back to everyone who decided not to visit duffy's because they live to a higher set of values. This should sum it up, kick one man while he is down, attempt to ruin another business in the process and all is solved. Great job to all bloggers!! Thanks Pantagraph for this demise, hope many papers were sold. "

Patron wrote on Oct 12, 2007 2:22 PM:

" I have been out to Duffy's a couple of times. Their food is good, but it seems expensive for what you get. When you order a salad as your side, you get that before the rest of the meal, then you get a piece of meat on a great big plate. Not very good presentation. How about a potato with the meal and then pay extra for the salad if they feel they must charge. At least the main entree wouldn't look so lonely. Also, the atmosphere is extremely just for people talking and everyone sits too close together. "

Jen wrote on Oct 12, 2007 1:40 PM:

" I don't know why this became a place to complain about State Farm people. They have nothing whatsoever to do with the article. I am happy that John was let go (or quit) as a manager at Duffy's. I am sorry their business had to decline and the staff had to suffer in order to accomplish this. John made the situation worse by avoiding the subject and avoiding his prior employees when they tried to reach him. In my own opinion, things would have been better had he owned up to what happened and gave an explanation. I hope the business picks up at Duffy's now that John is gone. I may even try it now. "

I agree w/ Huh wrote on Oct 12, 2007 1:24 PM:

" Every post on this website becomes a State Farm bashing fest. This article has nothing to do with State Farm. Every board on here is too negative and I don't think it reflects well on the community. I challenge the Pantagraph to seriously think about removing the option to post comments. They are nothing but a cess pool of negativity. "

Again to still not going wrote on Oct 12, 2007 1:01 PM:

" You make me laugh. I am sure you are a racist as well but you pull the "some of my best friends are......." Stereotyping a whole group of people off of a few you have met isn't very logical. Unless you have met thousands of people who work there then you cannot draw your irrational conclusion. On the topic of Duffy's I have ate there once and found it to be pretty good. Not good enough for the drive from where I live on a regular basis. "

Simple truth wrote on Oct 12, 2007 12:50 PM:

" Our goal at the Links is to bring the fine people of BN a unique tropical themed restaurant. A place where people can relax and enjoy themselves. John was brought on before he closed Ned's. We knew nothing about what would happen at Ned's, but later learned that he had the funds in his payroll account to cover his employee checks, only to see all of his assets frozen without notice. We hired a few of their employees because we had some staff that were going back to college at the end of the summer, and we thought we could help John make it right with his former employees by keeping him employed. Unfortunately the negative press that followed him started to affect our business as well, causing us to remove him from our operation. All of our customers are appreciated. I'm not sure why people pick on State Farm folks, but we're happy to have them as customers, as well as everyone else. Tripper continues to be our main operational partner. He is a town favorite in the food business and we're grateful to have him. Thanks. "

BigMike wrote on Oct 12, 2007 12:43 PM:

" The owners of Duffy McKaws should be saluted for taking a risk in starting a local business and emplying local people, some of whom worked at Ned Kellys. The hate State Farm mentality some people seem to have is just silly. State Farm as a company does a lot to help people through United Way and etc. Additionally, thousands of individual State Farm employees go out of their way to help the community. In the interest of full disclosure, I am a proud State Farm employee. "

Re: To: Re: Still not going there wrote on Oct 12, 2007 12:42 PM:

" How do I do it? Easy, I sit here and type them. I'm not saying everyone's a snob that works there, just many of them. My mother-in-law actually works there as well as several friends, they're not snobs. I'm just generalizing, specifically generalizing about the people I ran into at this particular establishment, as well as others. If I offended any of you, I'm sorry. "

huh? wrote on Oct 12, 2007 11:44 AM:

" Why does every article turn into a discussion about SF employees? Ridiculous "

Jimmy wrote on Oct 12, 2007 11:24 AM:

" Don't know the $ amount it would have been but it seems that Duffy's missed a golden opportunity for some great PR. Imagine if at the start of this they would have simply made good on the Ned Kelly's employees checks. They could have avoided weeks of negative PR and looked like a stand up place. "

so.. wrote on Oct 12, 2007 11:14 AM:

" Everyone wants him to pay his employees and then find work. Well, last I checked, if he has no work, how is he to pay his employees? "

To: Re: Still not going there wrote on Oct 12, 2007 11:02 AM:

" How can you make such statements? It really shows your ignorance. I work at SF and you have never met me so how can you even possibly call me a snob? "

Wendy wrote on Oct 12, 2007 10:54 AM:

" SNOBS? - I have many friends and relatives that either work for or worked for State Farm - not one of them is a snob. "

ridiculous wrote on Oct 12, 2007 10:32 AM:

" I think its crazy when people lump everyone who works at State Farm together. Thousands of people work there and most are very nice people. I have snobby mean cooworkers at numerous jobs. They are everywhere. To "still not going there" chances are you have only met a very small percentage of State Farm employees and shouldn't lump them together. And I don't work at State Farm. "

Re: "Still Not Going there" wrote on Oct 12, 2007 10:32 AM:

" Well, your being rather judgemental aren't you. Never understood why so many people think that SF people are snobs, there are quite allot of them that volunteeer their time to community efforts, I volunteer with a few of them. And hey..I even work at Country so there. "

TO: Still Not Going There wrote on Oct 12, 2007 10:03 AM:

" Takes one to know one. Have a nice day! "

I am going... wrote on Oct 12, 2007 10:00 AM:

" Duffy's is a great place and now that Schmitt is gone I am all for supporting our local restaurant and not just "Franchise" America establishments. Bloomington needs to have some local flavor. "

a reader wrote on Oct 12, 2007 9:40 AM:

" to the person that had gift cards...did you not read the paper days before it closed...if I knew a restaurant was closing and I had gift cards I would have used them QUICK!!! "

Re: "Still Not Going there" wrote on Oct 12, 2007 9:07 AM:

" Really? My post shows my IQ? Well, what about this quote you wrote: "You post shows you IQ." What does that say about yours? And to the person who asked where B/N would be without them? No where, I don't have anything against SF, I just personally don't like the snobs that work there. "

Whatever wrote on Oct 12, 2007 9:02 AM:

" So he should be giving his paycheck over to the former employees? Who gets paid first? How do you account for taxes and deductions? Most restaurants spend around 30% - 35% in labor costs, so the money has to go somewhere else. What about rent? Was he up to date? Guess some goes there. What about utilites, vendors and other business costs? They get some don't they? I guess he should have been working for 'free' at Ned Kelly's and just live off of public aid, no reason to take money when so many people need more. Give it a break, it was a business that didn't succeed. Everyone loses. "

oh well wrote on Oct 12, 2007 9:00 AM:

" now he doesn't have a job, I hope everybody is happy because this doesn't get them any closer to that final paycheck. If you take someone to court and win a case and they do not have the funds to pay it (at least on paper) then you won't get your settlement money. Just look at OJ - he was making a fine living but didn't pay much of his settlement. maybe he wasn't saving to pay them back but we will never know. "

Thats right wrote on Oct 12, 2007 8:51 AM:

" We pantagraph commentors never have made mistakes in our lives, so it is only fair that this man should be eternally punished. Who does he think he is, trying to be gainfully employed? This guy is the reason why we are loosing the war! "

Food Counts too wrote on Oct 12, 2007 8:39 AM:

" They are going to have to do something about the food or it will not matter who works there. The atmosphere is nice but the food is bland, overcooked and dry! "

Let it go wrote on Oct 12, 2007 8:34 AM:

" Come on people, some things just need to be let go. Too many times I read posts on here complaining about the same types of restaurants coming to B-N. Now a new idea shows up and everyone is complaining and protesting it for a reason that doesn't even effect them. I went there last weekend after a round of golf at the Links. They menu is very diverse, the food is great, great drink menu, the service is good, and all at a reasonable price. Plus, I agree w/ Support the Employees, if ex-Ned Kelly employees are their support them if you feel they were wronged. Crying about it on a message bored doesn't help anybody. Get over it! "

sorry wrote on Oct 12, 2007 8:30 AM:

" but they should have looked into the people they hired to manage their restaurant and to invest. and they didn't seem to have any problem with him until that article published in the pantagraph about his bad business practices on the front page. they were fine with hiring unethical people, until his ethics (or lack there of) became public knowledge. thanks for helping me decide which businesses aren't worth patronizing. "

still... wrote on Oct 12, 2007 8:08 AM:

" won't go to Duffy McCaws "

TO: To: Other idea? wrote on Oct 12, 2007 8:02 AM:

" yes ... yes they would have because that is the way people are today. "

To: "Still not going there" wrote on Oct 12, 2007 7:58 AM:

" Regarding my previous post, I don't even work for State Farm. "

To: "The still not going" wrote on Oct 12, 2007 7:56 AM:

" Where would Bloomington/Normal be without State Farm? "

Way to go!! wrote on Oct 12, 2007 7:44 AM:

" Thanks people for boycotting Duffy McCaw's!! We achieved what we set out to do. Now Schmitt is gone. Don't let the door hit you on the way out, Schmitt. "

To: In the Know wrote on Oct 12, 2007 7:43 AM:

" Perhaps you are right, but it would have been the "right thing to do" for Schmitt to use his own funds to pay these people. "

Work wrote on Oct 12, 2007 7:20 AM:

" I work at Duffy's and its a cool place. Tripper's a great boss and works hard to make his staff and customers happy. "

Legal issues wrote on Oct 12, 2007 7:10 AM:

" You are correct - it is a legal matter that has to be sorted through. However, there is a bigger issue at stake - what is the RIGHT thing vs what his legal obligation is. Maybe he doesn't have to pay them, ever. But that doesn't make it right, and if he had any integrity at all, he'd find a way to get the money to his former employees. "

I'll go back wrote on Oct 12, 2007 6:38 AM:

" I went there once, but afterwards found out Schmitt worked there. I decided to not return. Now that he's not involved, I'll go back. Their food was great for the price. Fnially...something different in town. The atmosphere is nice and light. Glad Schitt is gone. "

I don't care wrote on Oct 12, 2007 6:35 AM:

" Who runs the place. The food's not that great. The Ned Kelly's employees who ended up there might miss a few more paychecks soon. "

Todd the Bod wrote on Oct 12, 2007 4:27 AM:

" So he doesn't have money to pay his employees but his "wife" has money to buy into a new restaurant? How convenient. "

to: In The Know wrote on Oct 12, 2007 12:25 AM:

" Perhaps you mean "legal eagles" "

In the Know wrote on Oct 11, 2007 11:19 PM:

" To those of you who are advocating he use his personal paycheck to pay former NK employees, you're barking up the wrong tree and don't understand the difference between personal liability and business liability. Would it be nice for him to use personal funds to pay those employees? Yes, but it would be wrong. I'm sure NK's was incorporated, and it's up to the legal beagles to sort it out now. Business owners need to keep personal funds and business funds separate. "

bad apples wrote on Oct 11, 2007 10:36 PM:

" to still not going there, dont go then - who cares. "

"Still Not Going there" wrote on Oct 11, 2007 10:13 PM:

" Hey "Still Not going there", I don't work for SF but live by Duffy's, do us all a favor and do as you say! We don't want you or your kind on the east side! You post shows you IQ!! Hopefully Duffy's can learn from this and improve... "

Support the employees wrote on Oct 11, 2007 9:54 PM:

" The best thing that we can do is help the employees that Duffy's hired by showing them our support at their new place of employment. Duffy's has done a good thing by hiring several of the employees that lost their jobs. "

To:BJ wrote on Oct 11, 2007 8:47 PM:

" If this is the case every person that has filed bankruptcy should not be allowed to work period. I am not in support of Scmitt, but everyone has a financial problem in their lifetime. "

reply to gift cards wrote on Oct 11, 2007 8:36 PM:

" Might as well write that one off - you will never see a dime "

Still not goin' there. wrote on Oct 11, 2007 7:57 PM:

" That place is State Farm East! I'd rather not be around those stuck up snobs. "

WAY WRONG.. wrote on Oct 11, 2007 7:48 PM:

" He SHOULD make this right!! Take the money that his wife will get from the restaurant, and PAY YOUR EMPLOYEES!!!! I can't believe the many would have the nerve to show his face around here. I bet he lived it up when he was making the bucks!!! "

To: Other idea? wrote on Oct 11, 2007 7:29 PM:

" What? This guy wasn't earning money to pay the Ned's people. If he'd have been doing that, would they have filed complaints? You are way behind on this story.... "

gift cards wrote on Oct 11, 2007 6:34 PM:

" i guess i should stop waiting for a call back about the gift cards i couldnt use at ned kellys. one of the managers took our names the last day they said they would open and said we could get our money back, yeah right. "

Do the right thing wrote on Oct 11, 2007 6:34 PM:

" Hey, pay the people who worked for you, then get your restaurant life on track. A better story would have been that he took HIS paychecks at the new place to pay off the people HE owed. maybe by law he does not have to pay up, but by taking HIS checks and making good with HIS employee's from the past would create a story that people want to read and feel good about. Not paying your employee's will stay with him like a bad mankind virus. Just my two cents... "

Other idea??? wrote on Oct 11, 2007 5:50 PM:

" Maybe I'm looking at this all wrong, or maybe not.... Could it be that he took a job, in a business he is familiar with, so that he had the income to make payments to the former employees? The guy, and the other Ned Kelly employees, all need some form of income to pay their bills and stay alive... The story doesn't tell us what, if any, conversations may have taken place between Mr. Schmitt and his former employees and/or Mr. Schmitt and the owners of Duffy McKaw’s Tropical Grill. "

hey wrote on Oct 11, 2007 5:26 PM:

" I take it more as an attempt to save the business. Resturants have a hard enough time in town without bad publicity. "

BJ wrote on Oct 11, 2007 5:17 PM:

" I think this was a very smart idea for the Schmitt's. If they can't pay their previous employees at Ned's then they should not be working at another restaurant here in the area. If he wanted to work there he should have donated his check to the employees who did not get paid. "

???????? wrote on Oct 11, 2007 4:47 PM:

" is this a last ditch effort to make it look like this guy has a heart. he should have to keep working and not get paid!!! "
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