New York night club Verboten experienced a tumultuous week, beginning with the seizure of their building on Wednesday by the NY Department of Taxation and Finance. According to Thump, the venue owed an alarming $360,000 in taxes. Today, however, owner Jen Schiffer has reopened its doors after filing for chapter 11 bankruptcy.
The evening following the seizure, Schiffer and her husband John Perez filed in Brooklyn Federal Court. Currently, they are permitted to resume business while the case is worked out and a restructuring plan is crafted.
“Chapter 11 allows us to protect and consolidate our assets so we can operate this club with good partners, have successful events, bring in patrons, and move forward without being tortured, harassed and bled dry by a small number of our investors. We have every intention to keep working with the state.” – Schiffer
For the time being, it appears that Verboten will continue to hang on by a thread. Meanwhile, its owners also face a lawsuit from their investors for labor rights infringement toward their employees.