El Dorado County (Oct 9, 2024) – Aji Japanese Bistro, a staple in El Dorado Hills Town Center for over a decade, faces legal trouble after its sudden closure in May. Town Center East LP, representing the shopping center’s ownership, has filed a lawsuit against Aji and its owner, Russell Okubo, for allegedly breaching their lease agreement. The lawsuit claims the restaurant fell behind on rent and other payments starting in December 2022, with the last recorded payment made in March 2023. By the time Aji vacated the space on June 20, the business owed over $168,000, according to court documents.
Okubo, who also operates Fuji restaurant in Sacramento, responded to the accusations, pointing to longstanding issues with the building and a deteriorating relationship with the center’s landlord that began during the pandemic. In a statement posted on social media, Okubo explained that Aji faced escalating costs, including $60,000 in site repairs, on top of the already tough economic conditions for small businesses. He argued that while the Town Center had reportedly negotiated an exit strategy with Aji, unresolved building maintenance issues and other structural concerns played a key role in his decision to close the restaurant.
The lawsuit also comes as the space Aji occupied is being prepared for a new tenant—Mikuni Japanese Restaurant & Sushi Bar. While Mikuni has not yet opened its doors, the transition signals the end of an era for Aji Japanese Bistro, and the beginning of a new chapter for the restaurant space in El Dorado Hills.
Both parties have traded public statements, with Town Center owner Kevin Nagle asserting that Okubo was forgiven hundreds of thousands in debt over the years, while maintaining that Okubo failed to honor the agreed-upon exit terms. Despite the legal dispute, Nagle highlighted the Town Center’s success, emphasizing its nearly full retail occupancy and strong relationship with tenants.
