The New York City landmark Le Cirque has filed for Chapter 11 bankruptcy protection, saying it owes between $500,000 and $1 million to at least 100 creditors.
The fine-dining restaurant’s owners, the Maccioni family, told local media the crimp in cash flow is temporary and said they filed for debtor’s protection largely to avoid losing the lease to their prime midtown location.
Court documents show the restaurant estimates its monthly sales at $400,000 and its 30-day expenses at $463,586. The highest cost the restaurant needs to cover is rent, which the filing pegged at $94,735 per month.
The restaurant has and will remain open as the business is reorganized, the Maccionis said.
Le Cirque, now located on 58th Street, in the skyscraper that houses the Bloomberg news service, was one of the first U.S. restaurants to earn the respect of European chefs and restaurateurs. It also gained notoriety at home for being the New York playground of celebrities from politics and showbiz.
The request for protection from creditors was filed late on Friday but did not become publicly known until yesterday.