Submitted by New Jersey Bankruptcy Lawyer, Lee M. Perlman
A South Jersey restaurant owner has filed two voluntary petitions for relief under Chapter 7 of the U.S. Bankruptcy Code.
Louis Faragasso, of Gloucester City, New Jersey, filed two petitions earlier this month in U.S. Bankruptcy Court for the District of New Jersey Camden — one petition for the Faragasso Restaurant Group and another for McMichael’s Pub & Grill, the group’s sole restaurant at 157-161 S. Burlington St. in Gloucester City.
“I can tell you the business was struggling based on the geography, and they did everything that they could to continue to operate,” attorney Lee M. Perlman said. “As always, a filing is a last resort. The Faragassos explored all of their non-bankruptcy alternatives prior to this filing and exercised all options before having to file as a last resort.”
Faragasso Restaurant Group and the restaurant both have estimated assets worth between $100,001 and $500,000, according to the bankruptcy filings, which list the number of creditors between 1 and 49.
First National Bank was named a creditor in both the restaurant group and restaurant’s petitions, with $290,000 owed. CAN Capital, with $21,000 owed, was also named in the petition for McMichael’s Pub & Grill.
The filings estimate Faragasso and McMichael’s liabilities to be between $100,001 to $500,000.
A liquor license valued at $90,000, and furniture, fixtures and equipment valued at $20,000 are listed for the restaurant under “intangibles or intellectual property.”
The Faragasso Restaurant Group isn’t the only South Jersey entity to file for Chapter 7 protection this year. Luke Palladino, the New Jersey chef and restaurateur who owns a number of restaurants in the Philadelphia area, in September filed for Chapter 7 personal bankruptcy.
The Valley Forge Casino Resort replaced its upscale steakhouse restaurant concept called LP Steak, and went in a “new direction” after the chef filed for Chapter 7. The new restaurant, Revolutions, opened in October.
Luke Palladino Hospitality Group had a management contract with the Valley Forge Casino Resort for LP Steak, but the casino, following the petition, said it would no longer affiliate itself with the chef.
Originally published here by bizjournals.com.