CedarCreek Systems Files Lawsuit Against BirchStreet Systems Over Reseller Agreement

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CedarCreek Systems , a reseller specializing in Procure-to-Pay (P2P) solutions for the club and resort industry, has taken legal action against BirchStreet Systems in Orange County Superior Court.

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Provider: 
Business Wire, Inc.Business Wire, Inc.
Retrieved on: 
Friday, September 29, 2023
Information
Tags: 
Other Travel, Software, Payments, Lodging, Travel, Vacation, Data Management, Technology, Season, Partnership, Restaurant, Baltusrol Golf Club, Aramark, Marketing, Procurement, Superior court, Airport, Royal Troon Golf Club, Orange County, California Superior Court, Parthenon, EY-Parthenon, Payment, Olympic Club, Ethics, TAO, Congressional Country Club, Property management, Security (finance), Hotel, Sodexo, P2P
Geotags: 
UNITED STATES, NORTH AMERICA, CALIFORNIA, DELAWARE, BOSTON
Organisation: 
CEDARCREEK SYSTEMS
Summary
Key Points: 
  • CedarCreek Systems , a reseller specializing in Procure-to-Pay (P2P) solutions for the club and resort industry, has taken legal action against BirchStreet Systems in Orange County Superior Court.
  • The lawsuit centers on a breach of their reseller agreement by BirchStreet Systems, the market leader in P2P software for the hospitality industry.
  • The lawsuit was filed today by famed attorney Robert Shapiro, who will represent CedarCreek Systems in the case.
  • CedarCreek Systems aims to uphold the integrity of their agreement with BirchStreet and ensure that adequate support is provided to sustain their role in the P2P solutions market.


CedarCreek Systems, a reseller specializing in Procure-to-Pay (P2P) solutions for the club and resort industry, has taken legal action against BirchStreet Systems in Orange County Superior Court. The lawsuit centers on a breach of their reseller agreement by BirchStreet Systems, the market leader in P2P software for the hospitality industry. CedarCreek contends that insufficient support from BirchStreet has significantly impacted its role as a trusted reseller, prompting this legal action to seek resolution and appropriate remedies.

The lawsuit was filed today by famed attorney Robert Shapiro, who will represent CedarCreek Systems in the case.

"CedarCreek’s reseller agreement with BirchStreet has been in place for more than a decade—a relationship forged between the company’s respective founders, Nicholas Wilhelm and Sushil Garg,” said Shapiro. “Unfortunately, after new ownership took over at BirchStreet in 2021, its contract with CedarCreek was broken, damaging both my client and my client’s customers. We're determined to defend our rights and address this breach.”

Nicholas Wilhelm, founder and CEO of CedarCreek Systems, emphasized the critical nature of the partnership. "Our role as a trusted reseller is foundational to our collaboration with BirchStreet. The lack of adequate support has hindered our ability to effectively serve our clients within the club and resort industry."

CedarCreek Systems has been a key player in marketing and implementing BirchStreet's Purchasing and Payment technology for more than a decade. The partnership between CedarCreek and BirchStreet has been instrumental in providing efficient P2P solutions to private clubs across the United States.

Wilhelm continued, "We have always been committed to delivering top-notch solutions to our clients, and our partnership with BirchStreet has been pivotal in achieving this. However, recent challenges in our collaboration have left us with no choice but to take legal action to protect our business and our ability to serve our clients with the excellence they deserve."

BirchStreet markets and serves hotels, casinos, airports, stadiums, and restaurants globally. Customers include Hilton, Marriott, Four Seasons, Hyatt, Wynn Resorts, Aramark, Sodexo, Delaware North, and TAO Restaurants. CedarCreek clients served through its partnership with BirchStreet include Congressional Country Club, Baltusrol Golf Club, The Olympic Club, Kemper Sports, and Troon Golf.

The lawsuit seeks both resolution and compensation for the alleged breach. CedarCreek Systems aims to uphold the integrity of their agreement with BirchStreet and ensure that adequate support is provided to sustain their role in the P2P solutions market. The legal action reflects CedarCreek's dedication to maintaining high standards of service and business ethics, not only for themselves but for the clients they serve. The lawsuit also sends a clear message about the importance of upholding agreements and ensuring a fair and equitable business environment.

Notably, this legal action comes after significant shifts in ownership and control of BirchStreet Systems. In late 2021, Parthenon Capital, a prominent private equity firm based in Boston, acquired controlling interest in BirchStreet for an estimated $375 million, subsequently assuming operational control.

"The change in control after Parthenon's involvement shifted BirchStreet's operational interest away from crucial areas of our partnership. They have been willing to violate a decade-long agreement as a result. It's a regrettable situation, but we've seen similar scenarios unfold with private equity before," said Wilhelm.

Added Wilhelm: “What’s particularly unfortunate is that CedarCreek has signed $4 billion in potential spend to be captured by BirchStreet’s pay services, representing a significant revenue opportunity for both CedarCreek and BirchStreet.”

As the legal process unfolds, CedarCreek Systems remains committed to providing the best possible service to their clients and looks forward to a swift and just resolution to this matter.

About CedarCreek Systems

CedarCreek is the leading end-to-end inventory, invoicing, and payment solution in the club and resort industries. Cloud-based since inception, CedarCreek has the largest integrated supplier network in hospitality ranging from F&B, Agronomy, Retail, Housekeeping, and Maintenance/Engineering. Powered by BirchStreet, CedarCreek deploys solutions tailored to the operation’s size with the universal goal of improving controls, reducing cost, and establishing efficiencies.

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