Famous New York Restaurant Forced to File Bankruptcy

Tavern on the Green is landmark restaurant for locals and tourists alike. For many years, this New York restaurant, located in Central Park on the Upper East Side, has been one of the top grossing eateries in the city.

But the salad days may be over for this famous restaurant. On Sept. 9th, Tavern on the Green filed for chapter 11 bankruptcy protection. The license holders hope to reorganize and keep the business alive to pay off their creditors over time.

The current license holder, Jennifer Oz Leroy, said filing bankruptcy was the only solution. She said she filed for two reasons: extreme financial distress and the decision made by New York City not to renew her license.

The Leroys have run the restaurant since 1976 when her father took it over. The restaurant made most if it’s business from banquet events, corporate businesses and tourists.

But financial stress and the decline of Wall Street, fewer people are looking to host the posh events that were the restaurant’s bread and butter.

The Tavern’s chief operating officer, Michael Desiderio, said profits have been declining since 2007 due to the “uncertainty over ownership of the license.” Leroy filed for bankruptcy before she released her operating license to her landlord, Parks District. Her license is up December 31 of this year.

Leroy lobbied with the city to keep her license but it instead was given to Dean Poll. He will take over the restaurant when the Leroy’s license is up.

Poll said he is planning to invest $25,000 in the restaurant to upgrade the heating and ventilation systems, the kitchen,and the plumbing in attempts to restore the restaurant and keep it running efficiently.

The renovations will not all happen all at once so they can keep the restaurant open and running. They will conduct renovation over different periods of time. He plans to build an outside café and make the space a conservatory dining style.

Bankruptcy documents list 20 creditors, including the New York Hotel Trades
Council, which is owed around $1.7 million. The Council is the union for the employees who work for the restaurant. They had filed a suit to gain non-paid benefits and were entitled to seize restaurant assets.

But with the Chapter 11 filing the New York Hotel Trades Council will be paid and the assets will not be taken over.

Hopefully this landmark restaurant can be saved from going under and continue to play host to locals and tourist alike.

Learn more about filing chapter 7 bankruptcy.