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Beloved UES Wonderland-themed shop Alice’s Tea Cup sold to new owner while facing $230K debt

There’s a new Mad Hatter in charge of celebrity-favorite New York City restaurant Alice’s Tea Cup.

The sisters who founded the popular “Alice in Wonderland”-inspired tea house have sold off their business after more than two decades — and while facing a mountain of debt, The Post has learned.

“After 23 years, Alice’s Tea Cup finally found the right people to pass the baton to and the group is led by Jeni He who plans to be faithful to the core concepts and brand, and grow Alice’s Tea Cup beyond the current locations,” said Lauren Fox, who founded the shop with sister Haley in 2001.

The sisters who founded the popular “Alice in Wonderland”-inspired tea house have sold off their business after more than two decades. Christian Johnston
On Monday, the shop filed for an assignment of benefits for creditors — a workaround to Chapter 11 bankruptcy proceedings that helps restructure debts and manage troubled assets.  Christian Johnston

Alice’s Tea Cup has three locations — on the Upper East and West Sides and in Brooklyn — and has long been a staple for scones, finger sandwiches, hundreds of tea offerings and whimsical memories for kids, tourists and stars alike.

Celebrities like Conan O’Brien, Amy Schumer, the Olsen Twins Ewan McGregor, Julia Stiles, Laura Linney and Julia Roberts were all reportedly big fans, with many customers spotting them sipping away at a table with their young families.

On Monday, the shop filed for an assignment of benefits for creditors — a workaround to Chapter 11 bankruptcy proceedings that helps restructure debts and manage troubled assets. 

That means that assets and debts will be controlled by a law firm specializing in corporate restructuring, with court documents stating that attorney Lawrence Morrison was retained on July 13.

According to a filed creditor list, the tea house owes roughly $230,000 to credit card companies, contractors and other vendors. 

Alice’s Tea Cup has three locations — on the Upper East and West Sides and in Brooklyn. Christian Johnston
The lion’s share is a $150,000 debt owed to the federal Small Business Administration. Christian Johnston

The lion’s share is a $150,000 debt owed to the federal Small Business Administration.

During the peak of the COVID-19 outbreak, Alice’s Tea Cup received an $800,000 grant from the SBA’s Restaurant Revitalization Fund, according to the New York Times, which reported in 2021 that the shop was looking for new ownership after a laggard pandemic recovery.

The Monday filing is a way to address outstanding debts, according to former owner Haley Fox, and does not mean the shop’s tea cups and saucers will be sold for scrap.

Alice’s Tea Cup opened on the Upper East Side in 2005. Victoria Will

Fans of the themed restaurant will be grinning like the Cheshire Cat with the news that it will still always be tea time, despite an earlier report erroneously stating the shops had already closed.

Fox said that the new tea proprietor has previous restaurant experience and “is the right person for the job.”

“No location is shuttered or shuttering and the party goes on!” the statement from her sister Lauren added.

Alice’s Tea Cup opened their first Upper West Side shop in 2001, and quickly became a neighborhood favorite of kids, family and tea-time enthusiasts as well, offering traditional tea time treats like biscuits, finger sandwiches and scones, plus a huge array of tea leaves.

Alice’s Tea Cup has been a favorite of children, families and celebs alike. Victoria Will

The Fox sisters, who grew up in a household with a tea-addicted father, aspired to one day open their own tea shop. That became a reality nearly 23 years ago when sister Haley moved back to New York City from Los Angeles.

“When I told my husband the only thing I’d miss were the tea houses, he said I should open one. So I did,” she told The Post in 2005.

That year, the sisters opened a larger, 2,800-square-foot tea room on East 64th Street — called Alice’s Tea Cup Chapter II — where offerings expanded to include a full restaurant blending American fare with tea flavors, like a Lapsang Souchong smoked chicken breast. In 2019, they launched small café and takeout spot opened in Brooklyn Heights.

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