Bankruptcy closes Midtown II diner

| Aug 24, 2016 | Bankruptcy Law |

A Bankruptcy ultimately was not enough to save a Philadelphia Pennsylvania diner. According to Philly.com at   http://articles.philly.com/2016-06-02/business/73496318_1_diner-bankruptcy-health  , during the last two years, the Midtown II diner at 11th St and Sansom St in Philadelphia was cited by the sanitations department for 125 health code violations, 66 of them serious.

After the Midtown II racked up 37 health violations in February, the city issued a cease-and-desist order that closed the diner for two days.

Owner Hionas said business collapsed by 40 percent after the health department report.

Financial woes at the Midtown II began in 2000 when Hionas mortgaged the restaurant for a $700,000 loan.

The diner was leveraged twice again for an additional $4.2 million to finance construction of the Cosmopolitan, a restaurant in Vineland, NJ.

In 2013, as business sputtered at the Cosmopolitan, Hionas was unable to make payments and defaulted on the loans. Last year, the Vineland property was shuttered and Hionas filed for Chapter 11 protection.

The Midtown II diner had been scheduled for sheriff’s sale in February 2015, but its sale was delayed by bankruptcy proceedings, according to court records.

http://articles.philly.com/2016-06-02/business/73496318_1_diner-bankruptcy-health

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