More failure by the SLA…
After The Times article was published, the State Liquor Authority opened an investigation, according to William Crowley, a spokesman for the authority. The authority is cooperating with the criminal investigation.
This was going on for YEARS.
Any one care to walk by today and check on this?
Sherry-Lehmann’s Park Avenue store has been closed since March. Mr. Andrus said it would reopen soon. The Wine Spectator magazine recently that Sherry-Lehmann’s landlord planned to move to evict the store unless it paid $3.6 million in back rent by June 16. Mr. Andrus said on Friday that Sherry-Lehmann “has met its rent obligations.”
I think we can make a few assumptions now.
This is a pathetic outcome for all involved. To their extraordinary customer base, to the poor employees having to deal with the irate customers, to the unpaid distributors, to the casual drinker starting the Odyssey and then being stiffed, to the landlords, to the state tax authorities (that is my money too) etc etc
Hopefully if found guilty, the owners will face serious prison time, not just a slap on the wrist punishment. The problem is that it is seen almost as a First World victimless crime against people and institutions that can afford it.
That’s funny
Likely lawyer speak for they don’t owe the $3.6MM not that they have paid the $3.6 MM
Soooo…
SL’s landlord was kicking them out. They weren’t operating a store front (which is illegal in NY if you continue to sell online), yet the website is still up, and from what we can tell, they were still selling wine privately (also in breach of NY law if the store front was not operating).
Anyone been by there? Are they open? Have they been booted by the landlord?
it is, but not surprisingly, merchant services have been cut off, so it’s impossible to even attempt to place an order (cannot enter any cc info).
They are toast. All that remains is to see who gets to pick at the remains and who goes to jail.
Well that’s a good start.
It’ll probably only be Shyda, maybe Kris.
But Shyda is toast for sure.
First world crime. Slap on the wrist. Over/under 3 years
KAL has requested a default judgement form the court, as S-L has not responded to their $250,000 complaint. https://storage.courtlistener.com/recap/gov.uscourts.nysd.598134/gov.uscourts.nysd.598134.13.0.pdf
More debt that is unlikely to be paid back…
Ponzi crimes are being judged far more severely.
Agreed. I think the telling thing is that S-L hasn’t even bothered to respond to the lawsuit. I see a bankruptcy coming soon.
I am not an attorney … but I pay attorneys, so I know that they charge by the hour. And it seems like putting a lot of good money after bad to pay someone for even 1 hour of time to respond to a suit when you’re already racking up your bankruptcy tab.
If they can pierce the corporate veil??
I walked by the store two weeks ago early afternoon. It was closed at that time
Really stunning there is nothing further here.
We know that they own over $8 million in taxes, rent and inventory to clients, and that’s just what we know.
And their website is down, and the store never reopened.
I am pretty sure that they are now no longer a functioning entity. My guess is that bankruptcy lawyers are hard at work billing enough to put kiddies through college, creditors will get nothing, and the authorities will be looking at criminal charges. I am pretty sure that things will slow down to a crawl as evidence is gathered.
It certainly sounds like that could be possible in theory given the reports that the business’ assets were being treated as personal ones (e.g., drunk). The question would be if there are any personal assets to be had, and if they’d be worth the cost of litigation.