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Prentice Bankruptcy ... [Detroit]

rainsux Feb 3, 2011 02:41 PM

I was unaware that Matt sold his restaurant group ...

http://www.detnews.com/article/201102...

  1. coney with everything Feb 4, 2011 10:48 AM

    http://www.crainsdetroit.com/article/...

    5 Replies
    1. re: coney with everything
      x
      xman887 Feb 5, 2011 09:07 AM

      the crain's article sites a $1.5 million tax problem and the $3.4 million of unsecured credit, "related to debt from previous corporate entities." i have never seen any of his financial information, but reading between the lines, the tax issue could be because of the corporate structure of the matt prentice restaurant group ("mprg"). if the entity was an s-corp or a limited liability company, the tax obligations flow through to the shareholders/members rather than paid by the corporation. the unsecured debt is probably the result of the sale of mprg. most likely, he had to personally guaranty the debt of mprg. when he sold mprg, matt and the bank likely negotiated a settlement of his guaranty for the amount of mprg's debt (or a reduced amount) with a payment plan based on his expected future cash flow (i.e., salary from the newly owned mprg, earnout payments as part of the sale contract, etc.). he was probably unable to meet these obligations and had to file for bankruptcy protection.

      1. re: xman887
        momskitchen Feb 5, 2011 11:38 AM

        Never have been to any of his restaurants. Did I miss anything?

        1. re: momskitchen
          x
          xman887 Feb 5, 2011 01:20 PM

          i liked morel's and tavern on 13.

          still like northern seafood (though i had lunch there a few weeks ago and it was empty)

          did not care for shiraz

          never been to no vi chophouse nor his deli's

          heard mediocre reviews from friends about coach insignia

          1. re: momskitchen
            f
            Fibber McGee Feb 7, 2011 03:26 AM

            The delis were good, albeit a little overpriced. I prefer Plaza over Deli Unique.

            -----
            Deli Unique
            39495 Woodward Ave, Bloomfield Hills, MI 48304

            1. re: Fibber McGee
              JanPrimus Feb 7, 2011 07:49 AM

              +1

      2. r
        RedTop Feb 4, 2011 02:22 AM

        In the interview he gave WXYZ yesterday, he said the restaurant group was on solid financial ground. The bankruptsy was personal.

        2 Replies
        1. re: RedTop
          momskitchen Feb 4, 2011 08:09 AM

          Not what the Freep story said - it said the restaurant group was the biggest contributor to his debt.

          1. re: momskitchen
            r
            RedTop Feb 4, 2011 11:16 AM

            I think we're splitting hairs here. In his interview with WXYZ, Prentice said, the bankruptsy was his--as an individual; and the restaurant group was in good financial condition. This wasn't an intrepretation by a buisness writer. He looked at the camera and said what he said.

        2. x
          xman887 Feb 3, 2011 02:49 PM

          he sold it over a year ago, i believe to his attorney. another example of attorneys have more money than they know what to do with....

          http://www.crainsdetroit.com/article/...

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