Pink Elephant Alive And Kicking Out East
[Photo by Rob Rich]
From: hamptons.guestofaguest.com:
Pink Elephant may have gone bankrupt down in Chelsea, but it was celebration as usual out east at Capri. Did you ever wonder who the confetti-god was that is responsible for the thousands of pink slips and glitter that magically start appearing as you are dancing to Jay-Z at Pink Elephant? Thankfully, we have the photo evidence of the source. Mystery solved. The explanations for the behavior that happens underneath said confetti…I’m not sure that is ever going to be solved.
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Pink Elephant (under Paradigm Management Group) and Mansion (under Mansion 530 LLC) have management and service agreements with Bruce Dunston’s Partnership called 530 West 28th Street LLC. Typically under these arrangements, the management groups control promotions and operations and in return they get a cut of the sales and profits generated by the business owned by Bruce’s Partnership. Looks to me that after the management took their cut of the sales and profits, there wasn’t enough juice left over to sustain a viable business. Bruce’s LP pays roughly 100K a month in rent for starters. According to the filing, they over 630K in back rent and real estate taxes. It will be interesting to see what happens next. This is a Chapter 11 reorganization, which means both Pink Elephant and Mansion can continue to operate until they figure out a viable game plan. If the business continues to deteriorate to the detriment of its creditors, the bankruptcy court will force the company into a Chapter 7 liquidation - Game over