Photo: ultraBobban, Flickr
The Glazier Group, which owns the New York steakhouse and six Strip House restaurants, filed for Chapter 11 bankruptcy protection in the U.S. Southern District Court on Monday, Crain's New York Business reported.
Owners Peter and Penny Glazier said the group's restaurants and catering venues, including Bridgewaters and the Twenty Four Fifth ballroom near Manhattan's Washington Square Park, will not be affected. (The Michael Jordan's Steakhouse at Mohegan Sun Casino, in Connecticut, is owned by the Cornerstone Restaurant Group, with no affiliation to the Glazier Group.)
"We are restructuring corporate debt," Peter Glazier told Crains. "We tried to make a deal with our lenders, and we could not." The restaurants, he added, are "doing very well."
The bankruptcy filing shows that The Glazier Group owes $5.8 million to General Electric Capital Corp. GE loaned the group $7 million in 2007, Crain's reported.
Several law firms and professional service providers have filed law suits against the Glazier Group. The filing estimates the group has between 50 and 99 creditors. "The stated reason for the bankruptcy filing is to deal with the GE loan, but it is clear that their problem goes beyond the secured lender," bankruptcy lawyer Fred Stevens of Fox Rothschild, told Crain's.
The Glaziers employ more than 550 people and operate Strip House restaurants in five states.