Crain's provides more details on the announcement that Mobay on 125th Street will shutter. As suspected, rising rents up to 35% more in a gentrifying Harlem have forced the owner of the restaurant to shutter the eatery after recently filing for Chapter 7 bankruptcy protection. This basically means that the business located between Lenox and Fifth Avenue will liquidate its assets to pay off underlying debts. It's not all bad news for apparently the proprietor plans to reopen a new restaurant sometimes next year in Harlem but maybe on a less expensive commercial strip than 125th Street. More details in the Crain's article:
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I live on this block and I must say I'm not sad to see this place go. Years ago the food was amazing, but the quality has gone down hill so much that I'm sure they lost a ton of customers. The last time I went the food was awful and they were totally unapologetic about it. With so many new restaurants opening in the neighborhood, there's real competition now and residents no longer have to settle for second (or fourth) best.
ReplyDeleteI'm sorry to see them go...serious rent increases & hefty real estate taxes are no joke for a small business. Ive always enjoyed good food & pleasnat service throughout Mobay's 10-yr tenure. I wish them luck, and look forward to their next venture
ReplyDeleteI noticed the landlord is left owed $85,000 from Mobay, while the landlord still has to pay his bills, property tax, mortgage, insurance and no doubt some legal expenses dealing with this tenant. This may be why landlords wait for the right tenant rather than signing with anyone who may turn out to be a nightmare. I guess the landlord would welcome an offer from someone like Starbucks who has deep pockets and can pay their bills.
ReplyDeletePlus carrying huge insurance costs for having a commercial food tenant.
DeleteAs with anything there are good landlords and bad/greedy landlords.
I, of course, am almost saint-like.
Now the truth comes out Sanou you are a slum lord hehehehehe!!! Seriously, congrats on being a good landlord!!
ReplyDelete