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.
Per Crain's:
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.
I just jumped into the linkhole created by this post, and, well, this guy is canny if nothing else. This seems to be a slippery legal maneuver, not a sign of income distress. Chapter 11 is not Chapter 7. They will live to sling slices another day.
ReplyDeleteWhy don't the just bump the price of the pizza up to $10 a slice? They were already nearly half-way there with $4...
ReplyDeleteit's actually really good pizza. but terribly overpriced so i only went once.
ReplyDeleteSad but no surprise. I love the pizza. Price doesn't bother me. But about 1/3 of the times I've stopped in, they didn't have any pizza. Can't make money without product.
ReplyDeleteHope they survive. Some of the best (maybe the best) pizza by the slice I've had in my life, whether in the US or Italy.
ReplyDeletePrice is fair considering the massive size of the slices. The times I went the slices seemed to be comprised of about 1/4 of the pizza!
- East Villager
Very shady. Kinda ruins the taste.
ReplyDelete