According to Eater roughly a half-dozen more restaurants have closed in NYC, including chef Hooni Kim's Hanjan and the Long Island City outpost of Corner Bistro.
More than seven months into the coronavirus pandemic, restaurants across the city continue to close en masse. More than 1,000 have closed since March due to the financial downturn caused by the COVID-19 pandemic. Among them are neighborhood favorites that make this city great.
In all likelihood, though, this is only the beginning of permanent closures in New York, as loans from the Paycheck Protection Program run dry, rent payments continue to mount, and the return to indoor has started at 25 percent capacity. According to a September survey from the New York State Restaurant Association, as many as two-thirds of the state's restaurants could permanently close by the end of the year if they don't receive additional government aid. Due to the difficulty of tracking restaurant and bar closings right now, experts say that number could be even higher, and will likely only continue to grow.
Not only is the restaurant industry being hurt, so is the retail industry. Century 21, the discount retailer with its main store conveniently located across the street from my office, has filed for bankruptcy and will close all of its stores. Sur La Table, the luxury kitchen store where my daughter enrolled in cooking courses one summer, has announced it was closing about half of its 120 locations. It said this month it was closing an additional 17 locations, according to a press release.
If you are planning to close the doors of your company you need to understand the legal process for efficiently dissolving a business in New York and the steps required to conclude your LLC or corporation. Once the decision to close the company has been reached there are several steps to work through. These include:
- Bringing transactions to a conclusion and collecting outstanding invoices
- Ceasing operations and making final payments to employees
- Resolving or eliminating outstanding litigation or contingent liabilities (when possible)
- Liquidate the assets of the company
- Pay all taxes owed by the company
- Retire all debts and obligations associated with your business
- File final tax returns and reports to state and federal agencies
- Distribute any remaining profits or capital to members or shareholders
This process can be complicated, and it is not unusual for internal disputes to arise while efficiently dissolving a business in New York. Minority interests are concerned about access to the books, and all payments made to creditors, taxing authorities, and the firm's employees. Have the assets of the business been properly sold, or have the principal owners attempted to conduct “sweetheart deals” that deprive the company of needed capital? What is to become of intellectual property, trademarks, branding, and electronic property of the company such as the website and all associated internet properties?
What message will be used to communicate with employees, suppliers, creditors, customers, and other ownership interests? The best way to avoid additional business disputes is to be as transparent as possible and to provide open access to all information along the way. Many companies decide to hire an outside accounting firm or agent to independently manage the process.
The attorneys at the Law Office of Frederic R. Abramson can protect your interests and provide sound counsel when efficiently dissolving a business in New York while helping to prevent unnecessary disputes. We invite you to contact us or call today for a free consultation at 212-233-0666