Far from the Bay Area, let us pause this New Year's Eve to note the Chapter 7 Bankruptcy of New York's famed Tavern on the Green. The Central Park West landmark is scheduled to serve patrons for the last time tonight. Its famously glitzy décor goes on the auction block in two weeks as the owners struggle through bankruptcy proceedings and seek funds to pay off their debts. The restaurant is reported to have hundreds of creditors.
The tale of Tavern's Chapter 7 bankruptcy also is a reminder of how complex and acrimonious liquidation can be. According to a recent article in the Wall Street Journal, Tavern's "closing has touched off a flurry of litigation." Among other things, members of the family that owns the restaurant are reportedly suing each other. The family is also locked in a dispute with New York City over ownership of the restaurant's name (which, the Journal reports, has been appraised at $19 million).
It is all a very fast and hard come-down for a property that as recently as last year was the second-highest grossing independent restaurant in the country (though, as a number of media observers have noted in recent months, with the Tavern's famous glitz came extremely high overheads).
The restaurant business, of course, is notorious for both low margins and a fickle clientele. San Francisco, with its many restaurant bankruptcies, is no exception to this rule. The Tavern's woes are, however, a reminder of the importance of having an experienced Bay Area Chapter 7 Bankruptcy law firm behind you when tackling the often messy process of liquidating a business. The number of creditors, lawsuits and counter-suits associated with Tavern's closing may be a bit extreme, but the idea that bankruptcies can generate litigation and bad feeling is not. Enlisting the services of an experienced California bankruptcy attorney early in the process is a good first step toward keeping things orderly and ensuring that these difficult situations unfold smoothly.
Wall Street Journal: Lights go out at famed New York eatery
