Facing bankruptcy, two owners of a series of Dunkin’ Donuts stores in Manhattan and the Bronx are auctioning off their businesses.
The five Manhattan stores at 130 Church Street, 132 Nassau Street, 360 West 31st Street, 973 Eighth Avenue and 30 Rockefeller Plaza are all still operating and have attracted bidders, said David Constantino, assistant auction coordinator at David R. Maltz & Co., the auctioneer for the stores.
“The five in Manhattan are prime, hot, cash-flow positive stores,” added Richard Maltz, vice president of the real estate auction division at Maltz & Co., and son of owner David Maltz. As of August 30th, the stores each had projected net sales for 2008 ranging from around $700,000 to $2 million. However, the owner is forced to sell after declaring bankruptcy, Maltz said.
The Bronx stores at 1206 St. Nicholas Avenue and 3414 Jerome Avenue are currently closed, said Maltz, whose firm specializes in debt-related sales.
The owners could not be reached for comment.
Dunkin’ stores are all franchises, and the company’s corporate office said issues with the five stores in Manhattan and two in the Bronx have nothing to do with the corporation’s expansion plans. Dunkin’ plans to triple its U.S. store count to 15,000 by 2020. Locally, research by The Real Deal showed that Dunkin’ has signed at least nine deals this year, and a dozen in the last two years.
There are already 341 Dunkin’ stores in New York City, 78 of which are in Manhattan, according to a study by the Center for an Urban Future.
“Despite the current economic climate, we have no plans to halt our steady and strategic domestic and international growth,” said David Puner, communications manager for the coffee and baked goods chain.
The deadline to bid on the seven stores is Friday at 4 pm, at which time the top five bids for each store, and the top five bulk bids for the two groups of stores, will be sent to Dunkin’ Donuts for approval. The top five bidders will then be allowed to bid at the October 30th auction at The United States Bankruptcy Court.