Very recently, we posted that Verboten was shut down by the New York State Government for not paying taxes. Well, it turns out they owed $360,378.05 in sales taxes, and was able to reopen its doors today after filing for bankruptcy (this is not an April Fools Day joke). To save their nightclub, it seems, sources say Verboten’s owners, Jen Schiffer and John Perez, filed for voluntary bankruptcy through chapter 11 bankruptcy in Brooklyn Federal Court Thursday evening.
The bankruptcy filing came about after an unexpected closing. The owners felt they were doing well working with the state to work out a payment plan. The notice of closure told them otherwise. In filing for bankruptcy through chapter 11, all assets are consolidated and the club is able to still hold events and work with partners as long as it proves a profit. They will be able to conduct business and pay off the owed money without being harassed by investors.
On the night of seizure, the state sent representatives after business hours to seize the building and change the locks. Schiffer was quoted as saying,
“[Officials] treated me like a nightlife gangster. If anyone in New York wants to hear the full story [of what happened that night], come sit next to me at the club this weekend and I’ll tell it to you.”
For those concerned, the building is reopened and all events will be occurring as they were advertised.