In the month that COVID infections in New York passed one million, the city learned that an iconic Manhattan institution would be closing.
Back in December, when Gov Andrew Cuomo announced another city-wide ban on indoor dining in New York, historic restaurant The 21 Club made their own announcement. With the dining room having been closed since March on account of COVID-19, the iconic venue would close its doors permanently.
The 21 Club had opened as a Speakeasy in 1930 at the height of Prohibition. It entertained celebrities and captains of industry alike, everyone from Ernest Hemingway to Marilyn Monroe.
The Impact of COVID-19 on New York's Hospitality Industry
Ninety years on from the Prohibition, New York's hospitality industry faced a bleak challenge in the form of the coronavirus pandemic in 2020. Public health restrictions and the inevitable economic downturn have put enormous pressure on businesses. With significantly reduced capacity and squeezed revenue streams, hotels and restaurants have struggled to eke out enough money to make their mortgage payments or pay their commercial landlords. In turn, delinquency rates on large commercial real estate loans have surged.
The 21 Club survived Prohibition, the Great Depression, World Wars, and the financial crisis. For such an iconic institution to close now is frightening to all other business owners still in the hungry jaws of the coronavirus pandemic.
The recent news that indoor dining can reopen at 25% capacity on Valentine's Day will be little succor given the overstrained finances of many businesses. Shifting relief provisions in the coronavirus emergency mean the goalposts keep changing, and business owners struggling to meet mortgage payments must navigate a plethora of federal, state, and local guidelines. For many, success will be dictated by how they negotiate complex commercial loan modifications and foreclosure defense.
Is Your Business at Risk?
If you're facing a foreclosure in this trying time, the experienced New York City and New Jersey real estate attorneys at Melvin Monachan, PLLC are here to help. We can help explain your options in this trying time and guide you through the time ahead. Contact us today to learn about your legal rights and options. You can call us at (516) 714-5763 to schedule a free consultation.