Posted on 07/26/2010 12:16:49 PM PDT by Son House
Daisy Baker’s, a fine-dining restaurant in downtown Troy, N.Y., has filed for Chapter 11 bankruptcy protection and will remain open as it reorganizes its debts.
Jim Scully, president of Green Street Entertainment Corp., which owns the restaurant, said sales haven’t fully recovered from last year’s sharp downturn, when the recession especially hurt high-end restaurants nationwide.
In past recessions, Daisy Baker’s could rely on short-term borrowing to make it through slow periods. But that’s not the case anymore.
“We were always able to finance our operations to keep up with our seasonality, but banks stopped lending a couple years ago,” Scully said. “It’s hard to finance anything nowadays.”
Green Street Entertainment reported $18,725 in assets and $143,672 in liabilities on a voluntary petition filed July 23 at U.S. Bankruptcy Court in Albany. The largest unsecured claim is $85,887 owed to the New York State Department of Taxation and Finance.
Scully hopes to extend the terms of its debts as part of the reorganization. Daisy Baker’s is the second well-known restaurant in the region to file Chapter 11 bankruptcy in the past two weeks. The other, Cornell’s, in Schenectady, will also remain open.
Daisy Baker’s is located at 33 Second St. The restaurant first opened under different management in 1974 and was closed in 1988. Scully reopened the business in 1999. According to the court petition, the restaurant lease the building from Hormi Holding Co. Inc. That is one of the companies run by developer Sandy Horowitz, who owes about $700,000 in back taxes and penalties to the city for his properties.
Daisy Baker’s serves lunch and dinner and features live music, tango and swing dancing.
Hosting live acts got the restaurant into hot water last year when the American Society of Composers, Authors and Publishers filed a federal lawsuit claiming songs were performed without permission from the original artists holding the copyrights. The lawsuit sought between $750 and $30,000 for each of six alleged copyright infringements.
Scully said the lawsuit was settled. He couldn’t disclose the terms, but said it was costly. As part of the settlement, the restaurant has an ASCAP license for live acts. Scully viewed the bankruptcy filing as a positive step because it will enable the business to wipe the slate clean. He’s also making changes, such as updating the menu with chef Frank Burgess to offer “more interesting plates.”
“We need to let people know downtown Troy is alive and kicking,” Scully said. “We’re going to be here for the long run.”
Same question, who else in the business chain doesn’t get paid?
Three Fresno Piccadilly hotels declare bankruptcy
http://www.thebusinessjournal.com/tourism/5686-three-fresno-piccadilly-hotels-declare-bankruptcy
With at least $27 million in debt between them, three of Fresno’s Piccadilly Inn locations filed for Chapter 11 bankruptcy protection last week.
Something’s wrong here..or at least, doesn’t make sense..the $85k owed to NY state ..it can’t be corporate income taxes..because they weren’t making a profit, duh...so it’s either sales tax and or withholding...and I don’t think those can be discharged in a bankruptcy..am I wrong
“The largest unsecured claim is $85,887 owed to the New York State Department of Taxation and Finance.”
Think that says it all. Next time genius, don’t open a resturant in a tax suicidal state. I wonder if the wait staff was unionized?
I’ll have to let someone with more expertise answer to that, the reason I posted this article to to elude to the fact that other business are not going to get paid the money they are due, another side of bankruptcy probably being ignored by state run media
In NY state, if you don’t pay the sales tax, they set up shop in your establishment and take everything that comes in...
I was there in 78-79 and what Troy needed was for someone to flush it.
Sorry but there are NO fine-dining restaurants in Troy, New York. I have been to Troy on a Saturday night and discovered you can either go to a hockey game of leave town. I made the wrong choice by going to the hockey game.
There are two hotels there. No matter which one you stay at, you’ll spend all night wishing you’d picked the other.
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