The former operator of Delmonico’s in New York, yesteryear scene of Wall Street deals brokered over wedge salads and buttery steaks, has filed bankruptcy amid an ownership fight with its landlord over the storied restaurant’s name.
(Bloomberg) — The former operator of Delmonico’s in New York, yesteryear scene of Wall Street deals brokered over wedge salads and buttery steaks, has filed bankruptcy amid an ownership fight with its landlord over the storied restaurant’s name.
Ocinomled Ltd., which began operating Delmonico’s in the late 1990s, filed for Chapter 11 protection on Monday and listed $950,000 in unpaid rent allegedly owed to an affiliate of real estate investment firm Time Equities Inc. The affiliate, Beaver Equities Group LP, owns the historic building in Manhattan’s Financial District that houses the restaurant, which is temporarily closed.
The bankruptcy follows years of litigation between Ocinomled’s former partners and Beaver, which argues it acquired the Delmonico’s mark around the time it purchased the building bearing the restaurant’s name. Ocinomled’s owners contend they own the Delmonico’s name and common law mark in New York along with the goodwill associated with it.
In any event, the Time Equities affiliate and restaurateurs who say they’re working to reopen Delmonico’s argue Ocinomled’s lease expired at the end of 2022 and that new operators now have a 15-year deal to run the establishment.
Lawyer Rodney Austin, who represents the new operators — called DRG Hospitality Group — said Ocinomled’s bankruptcy will have no impact on plans to revive Delmonico’s, which closed during the Covid-19 pandemic. His clients are working toward a September re-opening, he said.
One of DRG Hospitality Group’s partners, Dennis Turcinovic, worked at Delmonico’s for about 20 years, Austin said. DRG Hospitality Group’s long-term lease commenced in January, according to court documents.
“DRG is not associated with Ocinomled at all, they’re totally different owners,” Austin said. “The bottom line is: them filing bankruptcy has absolutely no bearing on Delmonico’s reopening in September. None, whatsoever.”
Filing bankruptcy automatically pauses debt collection actions and lawsuits against Ocinomled, which is Delmonico spelled backward. Ocinomled’s former lawyer said in a June court filing that the business hadn’t paid about $562,000 in attorney fees and disbursements.
A representative for Time Equities said it doesn’t comment on pending litigation, while a lawyer representing Beaver Equities didn’t immediately return messages Tuesday seeking comment.
The bankruptcy is Ocinomled Ltd, 23-11155, US Bankruptcy Court for the Southern District of New York (Manhattan).
–With assistance from Steven Church and Amelia Pollard.
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