Famous New York Restaurant Files for Chapter 11 Bankruptcy

Tavern on the Green, one of New York City's most famous restaurants, has chosen to file for Chapter 11 bankruptcy protection.

Twenty creditors were listed in the bankruptcy filing, including the New York Hotel Trades Company, the New York Tent Company, American Express, and the Parks Department.

Despite the bankruptcy filing, the restaurant will continue to accept reservations from now until the end of the year.

Jennifer Oz LeRoy, Tavern's Chief Executive, blames the restaurant's financial troubles on the financial crisis and the tough economic times in general. In addition, LeRoy chose not to renew the restaurant's license with the city. A new license was granted to Dean J. Poll, who operates the Central Park Boathouse restaurant.

Poll plans to renovate the building, which dates back to the 19th century, with green technology before reopening the restaurant sometime next year.

This is not the first time the LeRoy family has come across financial troubles in the restaurant industry. In 1998 the LeRoy family bought and reopened the famed Russian Tea Room, but was forced to close the restaurant in 2002.

Under Chapter 11 bankruptcy, businesses and organizations have the opportunity to reorganize their financial structure while continuing to operate.

For more information about Chapter 11 bankruptcy protection, please click here to find a bankruptcy lawyer near you.