Barolo Ltd., owner of a New York restaurant frequented by celebrities, businessmen and tourists, filed for bankruptcy protection saying it’s facing eviction.
The restaurant listed assets and debt of as much as $10 million in its filing yesterday in U.S. Bankruptcy Court in Manhattan. It’s largest creditor is 81st & 5th Realty Co., which has a $1.5 million claim, according to court filings.
Barolo has operated in New York’s fashionable SoHo neighborhood for 25 years, said Paolo Secondo, Barolo Ltd.’s president and sole stockholder, in court filings. The 400-seat restaurant, located on West Broadway, began paying reduced rent under an agreement with the landlord in 2004, according to the filing.
In 2010, the landlord demanded the back rent owed and sought an agreement for the restaurant to vacate, according to the filing. The restaurant pays $110,000 a month in rent and the landlord has said the premises is worth much more now and could command higher rent. Barolo said its 30-year lease expires in 2018.
The case is In Re Barolo Ltd., 12-13389, U.S. Bankruptcy Court, Southern District of New York (Manhattan).