The Camel City Café, located in the Stevens Center at 401 W. Fourth St., is losing its operating space beginning Dec. 1.
The UNC School of the Arts, which owns the center, has terminated its lease with the restaurant, citing "repeated failures" of Café owner John Hughes to pay rent on time.
George Burnette, the school's chief operating officer said that Hughes has paid his rent on time only four times since he became a tenant in 2005.
"(As) stewards of a state property, we must manage our facilities in a business-like manner," Burnette said in an e-mail.
Hughes told his customers by e-mail that UNCSA's action would mean the cancellation of numerous Christmas parties and hardship for his employees during the holiday season.
"They have, in effect, given me no option to sell or move my restaurant," he said.
School officials said they want another restaurant in the center as part of its commitment to the Winston-Salem business community and downtown revitalization.
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