Iconic Fireman Hospitality files for bankruptcy — – Business News
The COVID pandemic’s long shadow threatens the long run of Fireman Hospitality Group, which runs some of Manhattan’s most iconic and venerable Italian eating places.
In a gorgeous transfer this month, Fireman filed for Chapter 11 bankruptcy, citing cash-flow issues that began earlier than the 2020 lockdowns and turned important when the group’s massive eating places misplaced a lot of their business.
It’s the most important Big Apple restaurant-empire disaster since 2020. The company’s high-profile eateries have more than 2,000 seats mixed — Trattoria Dell’Arte, Cafe Fiorello, Bond 45, Paris Bar in Le Méridien, Cafe Paradiso, Le Jardin Rooftop and two Brooklyn Diner outposts in Manhattan, in addition to a spot in Washington, DC.
Fireman Hospitality Group, which runs some of Manhattan’s most iconic and venerable Italian eating places together with Bond 45, filed for Chapter 11 bankruptcy, citing cash-flow issues that began earlier than the 2020 lockdowns. Bond 45 / Facebook
The eating places are identified not solely for crowd-pleasing menus, but in addition for whimsical artworks such because the “wall of noses” at Trattoria Dell’Arte and racy bronze feminine sculptures at Bond 45, some created by company founder Shelly Fireman himself.
After Fireman died at age 93 final October, the money crunch left the company going through practically $10 million in secured claims together with $6 million in rent and $3 million in gross sales taxes.
When some lenders informed Amex and different credit card processors to withhold funds, it left the company with much less than $100,000 in money readily available, in accordance with the bankruptcy submitting.
Now it’s urgently making an attempt to restructure its debt to keep its 9 eateries afloat and pay more than 800 staff, in accordance with restructuring officer Jordan Meyers of Sierra Constellation Partners. The submitting was first reported in FSR magazine.
The company was based by Shelly Fireman, who died in October at age 93. Getty Images
Fireman had struggled to make rent funds to some of its landlords regardless of tapping federal Paycheck Protection Program loans issued to stabilize the battered restaurant business during the pandemic.
Fireman later relied on service provider money advances, or MCAs, beginning in 2024. The company says in court docket filings that the MCAs are “criminally usurious and unenforceable loans.”
Without restructuring, the Chapter 11 case would revert to Chapter 7, “at which time the debtors’ operations would cease and its assets would be liquidated,” in accordance with the court docket submitting.
“I do think it’s important to note that all existing restaurants remain open for business and we look forward to continuing to provide great dining experiences to our customers,” Meyers informed The Post on Tuesday.
The money crunch left the company going through practically $10 million in secured claims, together with $6 million in rent and $3 million in gross sales taxes. Redeye Grill closed in July after a 30-year run. RedEye Grill / Facebook
He added that the choose gave the company “the ability to continue operations in the ordinary course” of business and “to obtain the financing needed to get through the process.”
Things gave the impression to be operating usually on Tuesday at Bond 45 and Trattoria Dell’Arte, with no seen falloff in food or service.
The company’s best power — proximity to prime efficiency venues — proved to be its best legal responsibility when former Gov. Andrew Cuomo and former Mayor Bill de Blasio ordered the closure of most public venues in March 2020.
Things gave the impression to be operating usually on Tuesday at Bond 45 and Trattoria Dell’Arte, above, with no seen falloff in food or service. Trattoria Dell’Arte / Facebook
Trattora Dell’Arte is throughout the road from Carnegie Hall; Cafe Fiorello is reverse Lincoln Center; and Bond 45 is on the identical block as three Broadway theaters. The efficiency venues needed to operate at restricted capability even after eating places had been again capable of serve indoors.
When income lastly returned to regular ranges final yr, it was too late for Redeye Grill on Seventh Avenue at West 56th Street, which closed in July after a 30-year run.
Company CEO Ben Grossman informed The Post on the time that the opposite Fireman locations had been all doing properly.
Grossman didn’t reply to emails on Tuesday.
