Esteban Parra

The News Journal

The owners of the Capriotti's Hockessin franchise were told their agreement with the national corporate sandwich chain had been terminated and they could no longer operate under the name.

The franchise termination was a result of its equipment being auctioned off at a New Castle County Sheriff's sale in order to pay money owed by the store owner, Kathleen Morgan, and her businesses.

"On Friday, March 14, 2014, franchisee's business assets were levied and sold at shariff's sale pursuant to court order," according to a letter sent to Morgan by Thomas J. Kent, an Exton, Pa., attorney.

Neither Kent nor Capriotti's chain officials could be reached for comment Wednesday. Morgan declined to comment.

Other than to say the agreement had been terminated, Kent's letter did not say when the shop had to cease being a Capriotti's.

Morgan's shop, located in the Lantana Square Shopping Center, remained open Wednesday and continued to display Capriotti items. It also still had items purchased at the Friday sheriff's sale by a representative of Geoffrey Scott for $26,000.

Scott loaned Morgan money over the years, according to a Superior Court lawsuit. A judged ruled last year, Morgan and her companies, Turkey Inc. and Cindee Inc., owed Scott $318,000.

Morgan has said in emails to The News Journal the loans were paid off.

Morgan, representing herself, has filed several lawsuits, including one against Scott claiming he conspired with others to cause her damages.

Contact Esteban Parra at (302) 324-2299, eparra@delawareonline.com or Twitter @eparra3.