Allen & Delancey has released its official statement from owner Richard Friedberg regarding its filing for Chapter 11 bankruptcy protection. It doesn’t really say much, so we gave Friedberg a ring and he told us the filing wasn’t necessarily a sign that the restaurant was doomed. “We aren’t in trouble,” he said. “We can pay off our bills in a reasonable amount of time. Business is good — I can tell you however that business is slow during the summer and these difficult economic times have compounded the problem.” So how will this solve the problem? “It puts everything that’s old on hold,” said Friedberg. “It will all be paid out but over a long period of time.” Friedberg says he expects a court to arrange a payment schedule sometime in the next four to six months — he’s confident that “fall is looking good” as far as the restaurant industry goes. His full statement follows.
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.
Speaking of Skeen, the restaurant has wasted no time quietly posting a slideshow of him making his Sweet Bread Tortellini. Enjoy!