The battle between Dr. Jekyll and Mr. Hyde may have a victor, likely to the dismay of the restaurateurs behind the popular Greenwich Village tourist destination.
The Jekyll & Hyde Club at 91 7th Avenue South filed for bankruptcy, Bloomberg reported. The restaurant reportedly owes $1.5 million in back rent and almost $7.5 million to creditors overall.
Deacon Brody Management, which owns the establishment, filed its case under the Subchapter V of the bankruptcy code, according to Bloomberg, which helps owners maintain interest even if they can’t fully repay its creditors. The owner is also using Chapter 11 rules for small businesses to quickly rearrange its debt without larger expenses.
The restaurant is known for its horror-themed menu options and dinner shows. Each floor of the restaurant has a different theme connected to a fictional, 1930s British explorers club, from Gothic horror to science fiction.
The decline in tourism likely didn’t do many favors for the restaurant. The pandemic led to fewer visitors in New York City in the past two years, hampering establishments reliant on the inflow of dollars from tourists.
The Jekyll & Hyde Club is in good company among New York City restaurants facing a difficult financial future. The Wall Street Journal reported in December Cipriani locations in the city were in danger after the hospitality company faced foreclosure in the wake of defaulting on a $53 million mortgage debt.
The pandemic’s hit on restaurants across the nation spurred calls for the federal government to replenish the Restaurant Revitalization Fund, a call Mayor Eric Adams has echoed.
The $28.6 billion fund was created under the American Rescue Plan Act to provide emergency assistance for eligible restaurants, bars and qualifying businesses. Restaurants are able to receive funding equal to pandemic-related revenue loss up to $10 million per business.
The program closed in July after running out of money.
[Bloomberg] — Holden Walter-Warner