Fireman Hospitality Group seeks Chapter 11 protection amid $10 million debt crisis

Fireman Hospitality Group, the owner of celebrated Manhattan Italian restaurants such as Trattoria Dell’Arte, Cafe Fiorello and Bond 45, entered Chapter 11 bankruptcy this month, citing cash-flow problems that predate the 2020 lockdowns and have deepened as its large-capacity venues lost business. The company now faces almost $10 million in secured claims, chiefly $6 million in rent and $3 million in sales-tax obligations, after founder Shelly Fireman’s death last October.

With credit-card processors instructed by lenders to suspend payments, the firm reported less than $100,000 in cash on hand. Sierra Constellation Partners’ restructuring officer Jordan Meyers said the goal is to restructure debt, preserve the nine restaurants, and continue paying more than 800 employees. The group has previously relied on Paycheck Protection Program loans and, starting in 2024, merchant-cash-advance financing, which it describes as “criminally usurious and unenforceable.” A judge has allowed the restaurants to remain operational while the case proceeds, but failure to reach a restructuring plan could convert the case to Chapter 7 liquidation.