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Allen & Delancey Filing for Chapter 11 but Not Closing

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According to this bankruptcy website and a pdf of the filing, the troubled LES spot and new Ryan Skeen landing pad Allen & Delancey has filed for Chapter 11 bankruptcy protection. While the filing took place in Connecticut (where one assumes owner Richard Friedberg lives), the creditors listed are high quality NYC food vendors including D'Artagnan and Down East Seafood, the landlord at 115 Allen (owed $15,000 in rent), and of course, the feds. Allen & Delancey owes over $350,000 to the IRS and $210,00 in New York State taxes.

Inside sources tell Eater that the move is most likely a "restructuring" given A&D is financially tied to the restaurant Monteverde upstate, which could potentially be even more in debt. As it just so happens, Monteverde seems to have filed on the same day.

Reps for Allen & Delancey say they will have a statement prepared sometime this morning but that the restaurant is absolutely not closing, not even close. Given the amount of hedging that usually takes place in situations like this—and the publicity surrounding the hiring of Ryan Skeen—we'll go ahead and believe them for now. If Tailor can do, you can do it, A&D.

UPDATE: The official statement from the restaurant's pr:

Allen & Delancey restaurant announced today that they have split the company into the “Old Allen & Delancey” and the “New Allen and Delancey” similar to what a number of Fortune 500 companies such as Chrysler and General Motors have done recently reorganizing under Chapter 11 of the United States Bankruptcy Code with the approval of the United State Government. The “Old Allen & Delancey” fully expects and intends to pay 100% of all allowed claims as approved by the court over time.

“This program allows Allen & Delancey to shed the greater part of a burden that threatened to undermine all its success. These proceedings will allow Allen & Delancey to continue to operate its fundamentally sound business in today’s difficult operating environment and be a healthier, more dynamic restaurant company with a whole new world of opportunities. Allen & Delancey looks forward to moving ahead and to continue its contribution to New York City’s restaurant scene with the recent appointment of acclaimed executive Chef Ryan Skeen. I encourage you to come dine at Allen & Delancey and experience the fine menu offerings of Chef Ryan Skeen” said owner Richard Friedberg.


· Allen & Delancey Docket [Official PDF]
· Silverman Files for Chapter 11 for City Lobster & Steak [~E~]
· Previous Allen & Delancey Coverage [~E~]

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