LITTLE SILVER, NJ — Patch obtained a copy of the most recent Sickles Market bankruptcy filing, filed last Friday in U.S. bankruptcy court.
Here is a summary of the filing:
Bottles by Sickles liquor store filed for Chapter 11 bankruptcy reorganization first, in April, and Sickles Market filed in May. Their bankruptcy cases have been pending in the courts for seven months and the court extended Sickles’ deadline for filing a plan of restructuring to November 22.
Find out what's happening in Middletownwith free, real-time updates from Patch.
On that date, Bob Sickles, Jr. and 1663 Partners officially presented their plan of reorganization to a U.S. bankruptcy judge: Their plan is that 1663 Partners will purchase Sickles Market, the six acres on which it sits, an adjoining lot of land (5 Harrison Ave.) and Sickles’ private Rumson home. 1663 will reopen the market. 1663 will hire Sickles, Jr. and his daughters to run at the market, plus previous market manager Maria Carrigan. Sickles, Jr. will be paid $200,000, Tori Sickles $150,000, Carrigan $125,000 and Sasha Sickles $100,000.
How much will 1663 pay for this? “1663 commits, subject to the terms of the plan, to fund not less than $8.5 million and not more than $9 million,” read the Dec. 6 filing.
Find out what's happening in Middletownwith free, real-time updates from Patch.
All the creditors owed money by Sickles (the banks, the produce companies, butchers and alcohol companies) will be repaid.
If all goes as planned, all the creditors will be asked to vote on whether or not they approve the 1663 restructuring.
However, at least two parties have now filed objections to Sickles/1663 Partners’ plan: Metrovation, the owner of the Anderson building where Bottles/Provisions was located, and Northfield Bank, which has a lien against the market and the private Rumson home where Sickles, Jr. and his wife live.
Those objections were filed as recently as Monday of this week.
Hon. Christine Gravelle is the federal judge who will ultimately approve or not if the 1663 Partners plan can proceed, and if Sickles will re-open.
“Robert H. Sickles and AHS Realty believe that this joint plan of reorganization is in the best interest of the creditors and that the plan is fair and equitable,” read the Dec. 6 filing. “Robert H. Sickles and AHS Realty, LLC urge that the voters accept the plan.”
It remains unknown what Judge Gravelle will decide, and the earliest she would make a decision is in February.
In his bankruptcy filing, Sickles said he has $10.9 million in assets and $7.5 million in liabilities. The 1 Harrison Avenue property where Sickles Market sits was valued at $7.9 million, according to a March 2024 appraisal done by Northfield Bank, which holds the mortgage on the market.
Chapter 11 bankruptcy is also known as reorganization bankruptcy and it is a way to allow a company to reorganize their finances, pay off their debts and continue stay in business, which the Sickles family said has always been its goal. Dan Stolz is the lawyer from Genova Burns representing Sickles in its bankruptcy, and attempts to restructure and reopen.
Events leading to the Chapter 11 bankruptcy filing
Directly from the Sickles family, here is how they account for the demise of their 116-year family business. The following is directly from the Dec. 6 bankruptcy filing:
“In 2019, the Sickles family determined to open a second market and a liquor store in Red Bank. Funding for the Red Bank market and the liquor store was provided through a $2.5-million commercial mortgage loan and a $1.1 million line of credit from Two Rivers Bank. The Red Bank Market is owned by non-debtor entity Sickles Provisions, LLC and the liquor store, operating under the name of “Bottles by Sickles,” is owned by an affiliated debtor, TST Beverages LLC in a chapter 11 bankruptcy pending in U.S. bankruptcy court.”
Bottles and the Red Bank Market officially opened on August 6, 2020.
“Unfortunately, the opening of Red Bank Market and Bottles faced a number of issues, including coinciding with the height of the COVID pandemic. Availability for parking of customers of Bottles and the Red Bank Market proved to be substantially less than the landlord (Metrovation, owner of the Anderson Building where Provisions was located) had suggested it would be. Moreover, as the COVID pandemic increased, foot traffic from commuters decreased.”
“It became difficult to find experienced food retail labor workers due to the COVID pandemic. Labor and other costs across all entities increased while revenue across all entities decreased. At the height of the pandemic, sales at the Sickles Market averaged 20% below pre–pandemic levels. Simultaneously, the pandemic essentially choked the opening and prospects for the Red Bank Market and Bottles. The pandemic also delayed the expansion by the town of Red Bank into the location of the Red Bank Market and Bottles, further heightening losses and reducing foot traffic at the Red Bank location for both the Red Bank Market and Bottles.”
“Due to the consumer behavior changes after the COVID pandemic, the Red Bank Market and Bottles never accumulated the foot traffic and commuter traffic planned for that space. With a lease already signed with Metrovation, and personally guaranteed by Robert H. Sickles, there was no choice but to move forward into a retail climate that was not suited to a very expensive $34 per square foot of rent to which the Red Bank Market and Bottles were bound.”
“The operating losses of the Sickles Market, Red Bank Market and Bottles were huge. With the hope that the end of the COVID pandemic would restore the Sickles Market, Red Bank Market, and Bottles to profitability, the Sickles entities refinanced the Two Rivers loan through Northfield Bank.”
However, despite refinancing, Sickles ultimately defaulted on the loans, the bankruptcy filing states.
“Unfortunately, even with the Northfield funding, the entities were unable to stem the tide of losses. The Sickles family utilized every resource available to them, including Robert H. Sickles’ 401(k) account, to attempt to keep the ‘ships afloat,'” read the filing. “The losses continued and rent to the Red Bank Market and Bottles landlord (Metrovation) became significantly delinquent. A decision was made that the Red Bank Market would have to close as there was no prospect that the losses at Red Bank Market would cease. The Red Bank Market closed on February 15, 2024.”
“In March of 2023, the situation at the Sickles Market also became financially unmanageable. On March 11, 2024, after 116 years of continuous operation, the Sickles Market in Little Silver due to its inability to make payroll. Bottles closed shortly thereafter, on April 17, 2024, and filed the Bottles Bankruptcy, on April 23, 2024.”
Sickles Market was first opened by Harold Sickles and his wife Elsie in 1908.
The top six banks or companies that say Sickles owes them money are:
If Judge Gravelle approves the plan, 1663 Partners will own:
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.
Click Here: ireland rugby shirts