CedarCreek Systems Accuses BirchStreet Systems of New Contract Breaches and Strategic Misconduct in Ongoing Dispute

In new claims, CedarCreek says BirchStreet disrupted its longstanding partnership with President Donald J. Trump’s properties, staged a sham acquisition to obtain confidential data, and has committed additional violations of their reseller agreement in an attempt to destroy the company.

SANTA ANA, Calif.--(BUSINESS WIRE)--CedarCreek Systems, a reseller specializing in Procure-to-Pay (P2P) solutions for the club and resort industry, today shared new developments in its ongoing legal and business dispute with BirchStreet Systems, with new allegations of bad-faith conduct and ongoing disruption to CedarCreek’s longstanding relationship with properties of President Donald J. Trump and the Trump Organization.

CedarCreek filed suit in 2023, alleging breaches of a 12-year exclusive reseller agreement that gave it rights to resell and support BirchStreet’s P2P platform in the private club market. The next court date is scheduled for September 18, 2025, in Orange County Superior Court. CedarCreek’s original complaint outlined a pattern of violations following BirchStreet’s 2021 acquisition by Parthenon Capital, including:

• refusal to deploy technology promised in client agreements;
• fee increases outside contract terms;
• client deactivations without notice; and
• legacy client assignment/theft without notice or approval.

BirchStreet’s contract violations have escalated since CedarCreek’s lawsuit was filed. Among these violations, BirchStreet has issued a press release announcing properties of President Donald J. Trump as its clients and its intention to adopt more properties in the Trump portfolio. Trump’s Mar-a-Lago property and Trump International are legacy CedarCreek customers. CedarCreek is responding by issuing a cease-and-desist letter to BirchStreet.

“BirchStreet’s violations leading up to the lawsuit, which have only continued since, are not ‘he said, she said’ disagreements. They’re documented breaches—emails, contracts, and communications that show intent,” said Nicholas Wilhelm, CEO of CedarCreek Systems. “We estimate damages exceeding $30 million.”

Additionally, CedarCreek disclosed that from January through early June 2025, BirchStreet initiated and pursued what it claimed to be acquisition negotiations with CedarCreek. CedarCreek now believes this was a tactic to access confidential information—including financials, client data, and personnel structure—without intent to finalize a deal.

“In retrospect, BirchStreet’s acquisition attempt was never about buying CedarCreek—it was about weakening our company and obtaining intellectual property to more easily steal our clients,” Wilhelm said.

After acquisition talks broke down, BirchStreet informed Wilhelm that it intended to begin assuming CedarCreek’s clients on July 1, 2025—disregarding the ongoing legal process and/or an attempt at a fair settlement. While not part of the current lawsuit, the 2025 talks provide added context in a broader pattern of strategic misconduct.

CedarCreek continues to support shared clients and is taking steps to ensure continuity where BirchStreet has disengaged. The company emphasized that it maintains a team of experienced personnel and long-standing customer relationships. “This is about more than a contract,” Wilhelm said. “It’s about protecting client operations, data security, and the standards our industry relies on.”

Though Parthenon Capital is not a defendant in the case, Wilhelm attributes the post-2021 deterioration of the BirchStreet/CedarCreek relationship to decisions under Parthenon’s ownership, including BirchStreet’s 2024 acquisition of ReactorNet Technologies followed by staff reductions.

“Before Parthenon, we had a partnership,” Wilhelm said. “Since then, we’ve seen tactics we’ve never encountered before—cutting corners, bypassing agreements, and ignoring consequences. We’ll stand by our clients and see this through.”

About CedarCreek Systems

CedarCreek is the leading end-to-end inventory, invoicing, and payment solution in the club and resort industries. Cloud-based since its inception, CedarCreek has the largest integrated supplier network in hospitality, ranging from F&B, agronomy, retail, housekeeping, and maintenance/engineering. CedarCreek deploys solutions tailored to the operation’s size, with the universal goal of improving controls, reducing costs, and establishing efficiencies.