Tucson's Red Sky restaurant closed

Chef/owner Steven Schultz also owns the Italian eatery Luna Bella, a few doors down from Red Sky in the Plaza Palomino at North Swan and East Fort Lowell roads. Luna Bella will remain open and will absorb about half of the 27 employees from Red Sky. It also will offer a menu that incorporates Red Sky’s California-French cuisine.

The 9-year-old Red Sky was Schultz’s flagship restaurant. Luna Bell opened late last year.

“We had planned for six months to open Luna Bella, and the month before we opened the stock market crashed,” said Schultz Monday morning.

“If I had known the economy was going to crash ...” he said, his voice trailing off.

SSS Hospitality, the parent company of Red Sky, filed for Chapter 11 bankruptcy at the beginning of this year.

But the realization that two restaurants in one plaza were draining his energy and resources forced Schultz’s hand.

“I’m sad it closed, obviously, but there were circumstances beyond my control,” he said, citing the economy and the media’s reporting of bad news such as the economy and swine flu, which he said kept customers away.

“The media hype really scared people,” he explained. “And the more people were scared, the less they went out to spend.”

“It’s hard to be in two places,” said Pat Connors, owner of Pastiche restaurant.

“One of the things we liked about Red Sky is he was there all the time. That’s what’s great about local restaurants — the owner/chef is there. Maybe he was spread too thin. So maybe in the end it will be best. Luna Bella is a great restaurant.”

Luna Bella, now operating under a corporation Schulz calls Red Sky Catering, has a larger kitchen and seats more people than Red Sky’s dining room. Those factors should allow him to accommodate more business.

“I’m optimistic and excited,” he said. “We’re combining the menus, and we’ll appeal to everyone. ... I’m the restaurant; I make it happen. People come to see me and eat my food. A name and a corporation has ended, but I’m still cooking in the same plaza.”