12/11/2012 05:10:00 PM

Union Trust Most Likely to Remain Closed

We reported that steakhouse Union Trust had closed last month, but it seems there's more to the story behind the abrupt shutter. According to The Insider, a January 8th hearing could see the restaurant's file for bankruptcy switching from Chapter 11 to Chapter 7, which would mean liquidation as opposed to reorganization. On top of that, tax credits were provided to the original seller, Sherwin Williams Co., which were then passed to buyer Joe Grasso, with the stipulation that the restaurant needed to remain operational for five years. Given its 2009 opening date, this means the government could go after Sherwin Williams Co. for the tax breaks, who in turn could pursue Grasso. Further proving the restaurant industry ain't an easy place to do business.

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