Breaking: Union Trust Files For Bankruptcy

Posted by Victor Fiorillo on April 2nd, 2011

Lots of eye-rolling went on back in 2008 and 2009 when Philadelphia saw a trifecta of grand steakhouses opening in a city (and nation) on the verge of economic disaster: Stephen Starr’s Butcher & Singer, Dallas-based chain Del Frisco’s Double Eagle Steakhouse, and the $12 million locally-owned Union Trust on Washington Square West. Well, Starr slid right through the mess, as he tends to do. And though Del Frisco’s has had its share of problems (unpaid bills and the hilarious dumpster wars, for instance) and rumors of its demise pop up now and again, it seems to have weathered the storm. But Union Trust has not been so lucky.

Yesterday, members of Union Trust Philadelphia, LLC met at 11 a.m. at the company’s 717 Chestnut Street headquarters to draft a Chapter 11 resolution. Citing pending litigation and an inability to pay its debts, in part thanks to claimed assets of less than $50,000, the company is seeking bankruptcy protection. The paperwork was filed in federal court late yesterday afternoon.

Although the restaurant is currently accepting reservations, opening chef/partner Terry White – who is no longer cooking there – said this morning that he does not expect Union Trust to remain in business for long. “It’s a mess,” he adds. “Now the civil suits will start rolling in…” Another source close to Union Trust agrees that the end is near.

“It was an extremely exciting project,” says public relations executive Peter Breslow, who worked with the company for nearly two years. “To watch it not reach its potential is disappointing to say the least.”

CORRECTION: The bankruptcy paperwork was filed on Thursday.

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This entry was posted on Saturday, April 2nd, 2011 at 12:32 pm and is filed under Food. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

mike

That sucks. I hope someone can do something with the space. I wonder what is going to happen at the old Roy’s now?
barryg

Didn’t Chops recently just open a few blocks away, too?
Mike

$10-$12 million in debt to open the place doomed it from the beginning. Just think how many $45+ steaks you need to sell to cover that amount of dept. Maybe in Manhattan, not Philadelphia.
PhillyChef

This Mike, thinks that ^^^Mike, is right!
Tipster, Esquire

This is bad news reporting.
Let’s get some facts straight before we go making assumptions.
Chapter 11 is filed for viable companies who want to restructure their finances. Texaco and Delta Airlines are two that immediately come to mind. Check it out below.

http://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_States_Code

Victor, I’ve been a big fan of your work lately, but I’m surprised you didn’t get some better information before posting this. It’s your job as a journalist! Oh well, I have no problem helping you out. I guess we shouldn’t be surprised that all you can afford to eat is ramen.
I guess it’s easy to get a quote from a guy who has no job. From my understanding, Terry White employment contract was terminated three weeks into the opening. After looking up the letters of organization (shareholders) for Union Trust Philadelphia, LLC, Terry White isn’t even on it. This means he’s not a partner, a shareholder, or anyone to listen to…period.

I looked up Peter Breslow’s website and Union Trust was the first thing he hung his hat on! Again, a bad source and someone I’m not willing to place credibility on. Too bad I don’t write for foobooz. Maybe readers would get some real facts. Then again, I can afford to eat out.
Frank

More false rumors about a great restaurant; they are reorganizing, true, but still open for business. Too many investors, and too busy of a restaurant to close. I’ll be there tonight enjoying oysters and a yummy dry aged rib eye!
Barbara

So sad to see that so many people are so quick to jump and publish articles before they know the facts. And to quote Terry White….what a joke!! Long live Union Trust!!
http://www.foxnews.com MrOpinionator

Gee let me think, should I go eat at a financially solvent steak house (as if there aren’t enough choices out there) or should I go to a financially troubled joint that just filed chapter 11.

@Tipster, Esquire – What are you doing reading this blog if you scorn it so much. You are such a tacky person, bragging about your money.
http://philadelphia.foobooz.com/author/vfiorillo/ Victor Fiorillo

@ Tipster, Esquire… Terry White’s complete quote was actually: “Now the civil suits will start rolling in against us.” In a subsequent conversation, he claimed that he is still part of the ownership group of the restaurant, and I would think that a person who is aware that a company that has more debts than it has assets would try to distance himself from that company, not claim to be a part of it. I am sure this will all bear itself out in court shortly.

In any case, it’s not bad reporting, and – most importantly – I haven’t had ramen in a decade or more.
Bruce

I don’t know the details or goals of the Union Trust filing, but in my bankruptcy practice I deal with liquidating Chapter 11 cases all the time. It’s a more controlled wind-down than a Chapter 7.

Interestingly, the bankruptcy petition (Case. No. 11-12565) lists debts as well as assets as $0-50,000. Not that that number is binding, but the debt amount seems quite low. Incidentally, the bankruptcy petition was signed and the case was filed on Thursday, not Friday.

While Wikipedia is free, it cost me 40 cents to look up the docket and petition on PACER, so I guess I’m eating in tonight.
cleevus

i love the banter. anyone at all in tune knew that this restaurant would never make it. however they go about screwing everyone they owe money to is trivial to the facts that they have had a parade of chefs, consultants and gm’s through the place, and are now stuck with everyone who has either been fired or can’t get hired by antone else. thanks for striking back, victor. guess you showed him. while you were at it, you should have corrected his referring to what you do as “reporting” and “journalist”
Tim

I am going to UT tonight for dinner – as it is delicious, STILL OPEN, local and the service is best in the city.
barryg

This sucks, I was planning on having dinner there, I guess since it is closed I will have to go elsewhere.
Judy

Still open…I’m at the bar now and the place is busy!!
Fairmount Frank

I’ve had better steaks at Little Pete’s.
Roys215

hahahahahahah Union Trust is garbage!!!!!!!!!!!
Sam

There was a joke going around a year ago that it was going to be turned into the world’s largest Cheesecake Factory.
Dave

One thing that always astounded me about the place was the fact that it must cost a fortune to heat/air condition a building that is more suitable volumetrically for NASA than a steakhouse.
eldondre

do they serve lunch?
Willie

I think so – at least they used to, not sure if they still do.

This place had the worst timing of any restaurant opening I can remember – over-the-top steakhouse for expense-acct junkies opens just as the economy crashes in 2008. Woops.

Given the amount of loot they spent doing up the place, they didn’t really have the option of scaling down to adjust to the new market. They would have gone bakrupt sooner if they done that – just had no choice than to keep plugging away at a target audience that’s not there anymore.
daugherty72

Yesterday, members of Union Trust Philadelphia, LLC met at 11 a.m. at the company

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Breaking: Union Trust Files For Bankruptcy