Terrace in the Sky has its finances in the gutter.
The French-Mediterranean restaurant, located on University property atop Butler Hall at 400 W. 119th St., has recently filed for Chapter 11 bankruptcy.
According to the filing to the New York Bankruptcy Court, the restaurant owes Columbia, one of its largest creditors and its landlord, $87,000. The filing also shows that The Trustees of Columbia University have been suing the restaurant for the past year in civil court for failure to pay for occupancy of the space. In addition, the restaurant owes $50,000 to the Internal Revenue Service and $100,000 to the New York State Department of Tax and Finance.
An initial case conference is planned for March 24, 2011.
Dan Held, director of communications for Columbia Facilities, wrote in an email that it is against University policy to disclose information about legal action with its tenants.
“I can confirm that Terrace in the Sky is a tenant of the University, but cannot comment beyond that. Any questions about the restaurant’s finances should be directed to them.”
The owner of Terrace in the Sky was not available for comment at the time of publication. Lawrence F. Morrison, the lawyer representing the debtor, did not respond to Spectator’s inquiries.
Although it has been a week since the filing, some residents were caught off guard.
“At first hearing this news is surprising, but then again not that much when you consider the state of the economy,” said Cynthia Breneman, a resident of 400 W. 119th. “Times have been hard and we’re still in fallback. I’ve never gone, but I’ve wanted to go.”
Though many residents were concerned about the restaurant closing, Chapter 11 bankruptcy filings allow the restaurant to remain open during reorganization.
“I was planning to go there in a month or two,” said Zhiran Zhou, a second-year Columbia Business School student and resident of Butler Hall. “I was thinking of going there for graduation or when I have something to celebrate. It’s a great place to take people to impress them.”
Others said Morningside Heights is a tough neighborhood for local businesses.
“It is difficult to have business in this area because it is seasonal. Not as many students are here in the off-seasons such as summer,” said Grace Chu, a resident in the area.
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