THE SAUGUS ADVOCATE – FRIDAY, MARCH 11, 2022 Page 19 DONUTS | FROM PAGE 3 shareholder of each of the three Companies until last July, when he was fi red after eight employees complained about his alleged sexually inappropriate and harassing behavior. He is currently a Board member of PDKD. * Catherine Delios Panesis, a sister who lives in West Peabody. She has been a 20 percent shareholder of each of the three Companies. She is currently an offi - cer and Board member of PDKD. * Peter Delios Jr., a brother who lives in Saugus. He has been a 20 percent shareholder of each of the three Companies. He is currently a Board member of PDKD. * PDKD Enterprises Inc., is a Massachusetts Corporation with a principal place of business located at 120 Lincoln Ave. in Saugus. PDKD operates a retail donut store and production facility at 120 Lincoln Ave. It is the original location and production facility selling donuts, breakfast sandwiches and beverages at retail. It also produces gluten-free products sold at retail and to Kane’s Donuts. It purchases traditional non-gluten-free products from Kane’s Donuts. * Kane’s Donuts Route 1, LLC, is a Massachusetts Corporation with a principal place of business located at 1575 Broadway in Saugus. Kane’s Donuts operates a retail donut shop and production facility at 1575 Broadway (Route 1), Saugus. It sells donuts, breakfast sandwiches and beverages at retail. It also produces traditional (non-gluten-free) products sold at retail and to PDKD and traditional and gluten-free donuts and muffi ns sold to Ken’s Handcrafted Donuts, LLC on a wholesale basis. * Kane’s Ventures, LLC, is a Massachusetts Corporation with a principal place of business located at 90 Oliver St. in Boston. Kane’s Ventures is the 70 percent owner of Kane’s Handcrafted Donuts LLC (“Kane’s Handcrafted”). Kane’s Handcrafted Donuts operates a retail take-out store located at 90 Oliver St. in Boston, selling donuts, breakfast sandwiches and beverages at retail. It purchases all donuts from Kane’s Donuts. Paul Delios alleged that “The Gang of Four’s efforts began” last August after he off ered to sell his interests in the Companies to them. Paul said he offered up his interests for $1 million. “After originally accepting Paul’s off er, the Gang of Four reversed course,” the lawsuit alleged. “Since he withdrew his off er, the Gang of Four has done what they could to push Paul out of the businesses. In breach of their fi duciary duties the Individual Defendants amended the Companies’ operating agreements to impair Paul’s voting power while increasing their own, reduced Paul’s salary, made misrepresentations that caused Paul to be investigated for wrongdoing (of which he was cleared), threatened to terminate his role as President of the Companies, and otherwise advanced their interests at Paul’s expense.” In court papers, Delios repeatedly describes siblings as unfi t to run the family business. “In September 2021, they voted to restrict Mr. Delios’ powers as President and CEO by appointing Maria to review all bills the Companies received before they were paid. In November 2021, they voted to elect Maria as ‘Manager’ of Kane’s Donuts and to elect Peter, Jr. as ‘Manager’ of Kane’s Ventures and Kane’s Donuts, notwithstanding the fact that Company accountants criticized both for being unable to balance a checkbook,” Delios said. “With their new-found power, Maria and Peter voted to increase the weekly ownership distributions being paid to Stephen and Catherine from $600.00 to $700.00 a week, and to begin paying themselves $2,000.00 per week as salary. To fund those changes, Maria and Peter also voted to further reduce Mr. Delios’ salary from $2,200.00 to $2,000.00 per week and to cease paying ownership on in the 1944 fi lm “National Velvet”? 8. On March 13, 2020, what 1. On March 11, 1927, the Roxy Theatre opened with the silent fi lm “The Love of Sunya,” which starred what actress whose name includes a bird’s name? 2. What brainy Anglo-Scottish dog breed has a twoword name? 3. What was Gabrielle “Coco” Chanel’s first perfume launch? 4. On March 12, 1857, in Concord, Mass., what abolitionist spoke who would later be memorialized in a marching song? 5. What 1973 dystopian fi lm with a name including a color is set in the year 2022? 6. Do toads migrate? 7. What sport is focused sports event was postponed from April 20 to September 14? 9. Where was St. Patrick born: Roman Britain, Ireland or Burgundy, France? 10. On March 14, 1794, what Massachusetts native patented the cotton gin? 11. Do sloths move slowly because they prefer sleeping? 12. What is known as “The Emerald Isle”? 13. On March 15, 1820, Massachusetts offi cially lost what state? 14. What U.S. government electoral process involves 538 people? distributions to themselves.” Delios predicted that “If the Gang of Four is permitted to oust Mr. Delios—whether by removal or by marginalization—the business and leadership experience he brings to the Companies will be replaced by an ineptness that would cause the Companies serious injury.” The complaint further states, “The most likely candidate to replace Mr. Delios—Maria—is a trained beautician and self-proclaimed “Head Baker,” notwithstanding that she has no kitchen and/or restaurant management experience. In her brief role as the Companies’ social media head, Maria decreased the Companies’ usual growth in Instagram followers by fi fty percent (50%).” “Peter, Jr. would fare no better. He has never built or managed a budget for the Companies, created a work schedule, or conducted employee training. Peter, Jr. could hardly fi ll a managerial role in a single store, much less run all operations for three Companies with more than $8 million in annual sales. “Stephen has already been fired from the Companies for sexual harassment after eight employees complained about Stephen’s sexually inappropriate and harassing behavior. Certainly, that disqualifi es him from consideration. And, if it does not, 15. What word meaning clothes made of denim is derived from the Hindi language? 16. On March 16, 1621, reportedly, Samoset befriended the Plymouth Colony pilgrims; why was he able to speak English? 17. The world’s fastest public train, the Shanghai Maglev, is powered by what? 18. What is the smallest known animal with a backbone: bird, frog or mouse? 19. What country earned the most medals at the 2022 Winter Olympics? 20. Why does Suff olk County in Massachusetts celebrate Evacuation Day on March 17? he too lacks all of the operational, fi nancial, and human resource experience necessary to run the Companies. “Catherine, undoubtedly the most competent of all other options, has had no involvement with the Companies aside from being a passive owner. With little knowledge of the Companies’ daily operations, she could not eff ectively run them.” The lawsuit notes that Peter Delios, Sr., Paul’s father, purchased Kane’s – a 65-year-old brand – in 1988. Paul worked under his father’s leadership from 1988 until 1995. In 1990, while working at Kane’s, Paul launched a successful catering company. He later opened two nationally-recognized restaurants in Charlestown, Mass. “Paul’s experiences establishing and growing these businesses—which he continued to run even after taking over for his father—served him well in future years,” the lawsuit continued. “From 1988 until 2007, Paul’s mother was responsible for Kane’s fi nancials. In 2007, Paul’s mother asked him to take over Kane’s financial matters. Later that year, Paul’s father stepped down from his leadership role in the Companies and selected Paul to take over as President and CEO, a position that Paul has held ever since.” ANSWERS 1. Gloria Swanson 2. Border collie 3. Chanel No. 5 4. John Brown (“John Brown’s Body”) 5. “Soylent Green” 6. Yes; in spring they come out of hibernation and head for their breeding pond. 7. Steeplechase (horse racing) 8. The Boston Marathon 9. Roman Britain 10. Eli Whitney 11. No; because they have a very low-calorie diet, making for a slow metabolic rate 12. Ireland 13. Maine 14. The Electoral College 15. Dungarees 16. He had learned it from English ship captains trading in his home area of Maine. 17. Magnetic levitation 18. Frog (paedophryne amanuensis) 19. Norway 20. On that day in 1776 the British had to evacuate Boston.
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