Crain's reported this afternoon that the company behind South Brooklyn Pizza has filed for Chapter 11 bankruptcy protection. The pizzeria has three locations, one in Carroll Gardens and two in Manhattan, including one at 122 First Ave. between Seventh St. and St. Mark's Place.
According to an affidavit accompanying the most recent petition, the bankruptcy "was precipitated by landlord-tenant issues with the landlord, over-landlord and fee owner of 122 First Avenue." In 2009, [owner James] McGown signed a sublease for the First Avenue property, and invested $400,000 in the store's renovation, but the property has changed hands several times since. Mr. McGown now "has no idea who to pay money to" for the deal, the affidavit says.
Earlier this year, South Brooklyn Pizza started renovating the space next door for a new dining room.
On March 28, Jeremiah Moss reported at Vanishing New York that former East Villager Kati Duncan, who has a 25-year-lease on the storefronts at 122 First Ave., is in a "legal brawl" with South Brooklyn Pizza, who is subletting the space. In 2010, South Brooklyn took over the space next door as well... the former Ruben's Empanadas. Duncan said that this was done without her knowledge.
Per the post:
Duncan's lawyer says that South Brooklyn Pizza is "encouraging the Overlandlord to bring an eviction proceeding" against her, so they can take over the lease.
Read the whole post at JVNY.