Business
It's peak season in Malibu, but these small businesses are still struggling after the Palisades fire
Six months after the Palisades fire roared down Pacific Coast Highway, the Country Kitchen in Malibu is open for business, but many customers have yet to return.
The no-frills eatery features a few outdoor tables and ocean views, nestled in a narrow parking lot alongside a liquor store and gift shop. The restaurant, which opened in 1972, is literally a hole in the wall. It serves breakfast burritos all day and burgers out of a window.
It wasn’t destroyed by the fires but had extensive smoke damage. It was cut off from most of its customers for close to five months, waiting for the highway to reopen. Business is a lot better than it was a couple of months ago, but still well below what the restaurant would usually see this time of year.
“Things are better, but if you compare it to last year, it’s still probably 25% less business,” said Joel Ruiz, who has worked at the Country Kitchen for 40 years.
Up and down the coast, businesses that survived the flames are still hoping for a return to normalcy. As customers slowly return to a changed landscape, the small businesses that dot Pacific Coast Highway wonder how long it will take to get back to business as usual.
1. Joel Ruiz works at the Country Kitchen on PCH as businesses reopen after being closed due to the Palisades fire. 2. A painting of the Country Kitchen hangs on the wall of the roadside restaurant.
PCH was closed to nonresidents for five months following the Palisades fire, isolating the once-bustling businesses that catered to beachgoers and tourists.
According to the California Department of Forestry and Fire Protection, the Palisades fire charred more than 23,000 acres and destroyed more than 6,000 structures. The blaze burned the vast majority of homes along the ocean from Topanga Canyon to Las Flores Canyon.
Nearly 800 structures were lost in Malibu, including the Reel Inn, a seafood restaurant just a few miles down the road from the Country Kitchen. Other popular restaurants including Duke’s Malibu are still closed due to damage. Caffe Luxxe near Carbon Beach was closed for months before reopening in May.
Jefferson Wagner, owner of Zuma Jay’s surf shop, reopens after being closed due to the Palisades fire.
It should be peak summer season for Zuma Jay’s, which has been selling boards and wax to surfers since 1975. Instead, sales are about a third less than normal.
“It’s better, but not like it was last year at the same time,” Jefferson Wagner said. He couldn’t pay his four employees for months.
Wagner holds an old young photo of himself and his daughter.
Some estimates put the total cost of the Los Angeles area wildfires at $250 billion. Gaps or delays in insurance coverage have kept many from cleaning or rebuilding their property at the pace they hoped.
“We’re still trying to get back to what we had before,” said Malibu City Councilmember Doug Stewart, who was serving as mayor during the Palisades fire. “The store owners and restaurants are telling me that things have picked up considerably, but they’re still not back to what they’d expect to see for the summer.”
Stewart said most businesses in the community were spared from being burned to the ground but are still struggling to reopen and stay viable.
“It’s less of a rebuilding issue and more of a question of making sure that they’ve been able to survive,” he said.
The businesses neighboring the Country Kitchen in the strip mall along PCH have all had to adapt to the aftermath of the fire. Even the view from the parking lot is different, with vast stretches of the ocean now visible where homes had previously stood.
Carter Crary, co-owner of scuba shop Malibu Divers, poses for a portrait shortly after his business reopened.
The scuba shop Malibu Divers officially reopened May 23, the same day Gov. Gavin Newsom reopened PCH. Co-owner Carter Crary came into the shop every day while the road was still closed, serving an occasional customer. Business was down about 90% for more than four months.
“There’s been a definite change since the highway reopened,” he said. “We are not yet where we should be for this time of year, but we’re on a trajectory that has us heading in the right direction.”
Malibu Divers doesn’t have business interruption insurance but was able to offset some of the losses caused by the fire with a Small Business Assn. emergency loan. Crary estimated his business has lost out on $150,000 in revenue since January. The shop earns between $500,000 and $1 million in a normal year.
Crary employs around 12 staff members, but he’s currently not able to pay or bring in his in-store employees. The dive shop, which offers rental gear and scuba lessons, opened in 1969 and is usually busiest between May and September.
Business has been further impacted because people aren’t diving in the areas where the Palisades fire burned. Most divers are going north for cleaner waters, Crary said.
Malibu’s scenic beaches, now contaminated with heavy metals and debris from the wildfire, usually attract customers to Roxanne Jensen’s souvenir shop, Blue Malibu, located a few doors down from Malibu Divers.
“It’s been very slow because people don’t know we’re open,” Jensen said. “We have to be patient. As long as the ocean is there, the customers will come back.”
Jensen closed her store for five months after the fire destroyed the merchandise on display and drove away tourists. July and August are typically big months for sales, said Jensen, who runs the shop with her husband.
Jensen’s landlord is allowing her to pay half her usual rent, but even that is hard to come up with, she said. She opened her shop 10 years ago and sells sweatshirts, swimwear and gifts.
Jensen said she has faith the Malibu community will rebound, like it has several times in the past after disastrous wildfires and landslides. She stood among her merchandise on a recent quiet Wednesday and was cautiously hopeful.
“Maybe next summer will be normal,” she said.
Though the Country Kitchen employees had to stay home with no pay for months, they are back now, serving chili cheese fries, omelets and buffalo burgers.
“People love this place,” Ruiz said, standing in front of spot where he has worked most of his life. “We had customers calling who wanted to come in, but for a long time they weren’t able to.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
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