LITTLE SILVER, NJ — A new owner is now attempting to take over and reopen Sickles Market.
Sickles Market is the gourmet food market that stunned residents in this wealthy wedge of Monmouth County when it abruptly closed all locations this winter, and filed for Chapter 11 bankruptcy, disclosing $7.5 million in debt.
Sickles’ filed for bankruptcy protection in April, and their bankruptcy application is still proceeding in the courts.
Find out what's happening in Middletownwith free, real-time updates from Patch.
However, a legal document was filed in the New Jersey court system last Friday, Aug. 16. That document, called a memorandum of understanding, details a plan to transfer Sickles’ assets and the land on which the market sits to a new owner, called Newco.
The assets owned by former Sickles owner Robert Sickles, Jr. are listed as: AHS Realty LLC, which owns five acres of land at 1 Harrison Avenue in Little Silver (where the market is located), the Sickles Market building itself; Sickles Market Provisions, LLC (their failed Red Bank offshoot); TST Beverages LLC (the liquor license used by Bottles by Sickles liquor store), plus Sickles and his wife’s home in Rumson.
Find out what's happening in Middletownwith free, real-time updates from Patch.
According to the MOU, a company called 1663 Partners, LLC, described as an “investment vehicle owned by Jennifer Griffin Karp, Dennis Devine and Timothy McCooey” says it will provide the cash to transfer AHS’ assets to the Newcos.
A sale price is pointedly not revealed in the MOU. It also remains unknown who owns or operates Newco.
However, all three of those are familiar local names: McCooey is a Rumson resident who ran for town council in 2013. Karp and Devine lived or live in Rumson; Devine has been involved in organizing the Rumson St. Patrick’s Day parade.
From there, 1663 Partners will form at least three new subsidiaries: Market Newco, Land Newco and Brand Newco. Market Newco will own Sickles original market on Harrison Avenue; “Land Newco” will own the private home and all other real estate currently owned directly or indirectly by Sickles, Jr. and “Brand Newco” will own the brand and intellectual property owned by the Sickles.
Also, as per the agreement, Sickles, Jr., his daughters Tori and Sasha Sickles and former Sickles market manager Maria Carrigan will each be hired to work at the new market. The Sickles family will be paid by Market Newco as follows:
It appears that Market Newco intends to reopen Sickles as a food market. The MOU states “After the first year, compensation increases shall depend on Market Newco’s performance and profitability … an ‘executive bonus pool’ will be triggered upon Market Newco’s achievement of $17 million in annual revenue.”
The MOU has not been signed by all parties, nor has it been approved by a bankruptcy court judge. So far, only McCooey signed it.
(Sickles, Jr. did not get back to Patch when we asked questions about the proposed asset transfer; all of the information in this article is from the memorandum of understanding.)
Meanwhile, while all this is happening, there are still dozens of Sickles former employees who say they have still not been paid for the past month before the market closed in February.
These are the men and women who stocked shelves, made food and worked in the garden center and catering. They also say Sickles failed to provide continued healthcare benefits for its employees after abruptly closing down.
One woman who worked in the Sickles gardening center said she was laid off in a seasonal lay-off in January. She said Sickles, Jr. personally told her her health insurance would be covered through March. Thinking she was covered, she had surgery. Her health insurance company then informed her that Sickles had not paid its insurance premiums since January. Her insurer told her she owes $83,000 for that surgery, which she’s been fighting and whittled down to $13,000.
“I’m so happy right now that at least I don’t owe $83,000 anymore,” said the employee, who did not want to give her name. “It’s been difficult to find a lawyer to take my case once they filed for Chapter 11 bankruptcy, and I’ve talked to seven or so lawyers. Everyone is hands off now that they are in bankruptcy. So now they’re just going to reopen and everything is hunky dory?”
“Nobody has been paid. We are all owed a month’s pay. I think by the time taxes come out, I’m owed $2,500, more or less,” said another former Sickles employee.
Sickles Liquor Store Files For Bankruptcy; Is $5.2 Million In Debt (April)
Vendors, Employees Say Sickles Owes Them Thousands Of Dollars (March)
2nd Lawsuit Against Sickles Market: Meat Vendor Says It’s Owed $100K (March)
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.
Click Here: custom injection moulding