The heavily indebted Cipriani restaurant empire is waging a battle against the Capitol One bank which has just announced an auction date in which everything owned by the restaurant group must go.
Scheduled to take place on September 7, the bank is trying to recuperate as much of Cipriani’s debt as possible which stands in the region of $4 million. The scale of the debt also means that aside from physical assets (such as ovens and cutlery), Cipriani also faces losing its recipes as well.
According to court papers, the bank has already cleared Giovanna Cipriani’s personal bank account of $368,000 and removed a further $285,515 from 20 bank accounts attached to the five Cipriani restaurants, ballrooms and cafes in Manhattan.
That said, the famous restaurant group is fighting back as Cipriani spokesman Matthew Hiltzik explained: “It’s incredibly disappointing that Capital One has opted for guerrilla tactics like this instead of continuing the previously good-faith negotiations. We will vigorously defend ourselves.”
“Despite the bank’s irresponsible behavior, we want to make it clear that this will not in any way affect Cipriani’s operations, and we still remain confident that this year-old dispute will be resolved,” Hilzik said.
If the auction does take place it will allow bidders to buy Cipriani’s trademarks and licenses as well as their barber chairs and massage tables found at their private club on Wall St.
(Source: nypost)