Bankruptcy Judge Approves 1663 Purchase Of Sickles Market, Rumson Home

LITTLE SILVER, NJ — In a breaking news update to the Sickles Market bankruptcy saga, a federal bankruptcy judge on Tuesday approved the proposed Sickles Market land deal to go through.

Hon. Christine Gravelle issued her decision Tuesday, allowing a proposal from an LLC called 1663 Partners to proceed.

1663 Partners is composed of three Rumson residents, Jennifer Griffin Karp, Dennis Devine and one-time Council candidate Timothy McCooey. What they seek to do is purchase three properties currently owned by Robert Sickles, Jr. and his wife: The six-acre lot at 1 Harrison Avenue that houses the market and all its related assets; a one-acre lot at 5 Harrison Avenue, immediately next door, on which sits a small house; and third, the Sickles' private family home on Heathcliff Road in Rumson. (The liquor license used by Bottles by Sickles has already been sold.)

With the judge's approval yesterday, the sale can proceed. It's big news.

How much is 1663 Partners paying for all this?

A total sale price has not yet been worked out, said Dan Stolz, chair of the bankruptcy department at major New Jersey law firm Genova Burns. Sickles hired Genova Burns as his bankruptcy lawyers.

"(A sales price) hasn't been defined. I cannot even answer, I don't hold the purse," said Stolz. "A judge yesterday allowed the plan to proceed, and all the parties are now talking to each other and assessing."

Whenever that price is made public, it will be quite the sum: The two Little Silver properties combined, including the Sickles Market building and its assets, were appraised at $6.25 million, according to court filings. However, the Sickles believe the lot is worth far more than that.

Separately, their Rumson home was appraised at $2.4 million.

1663 Partners wants to re-open Sickles Market and run it as a gourmet food store and nursery again. Sickles, Jr. and his two daughters will work there, at proposed six-figure salaries, and receive minority ownership (5 percent) shares in the market. Sickles and his wife will be allowed to keep living in their Rumson home, as tenants, but will not immediately have to pay rent. There is the understanding they will have the chance to buy the home back from 1663 Partners.

This is all according to a memorandum of understanding between Sickles and 1663 Partners, which Patch broke the details of last week.

1663 Partners does propose building residential around the market: They propose tearing down that small house at 5 Harrison and building residential, said Stolz Wednesday.

Are they thinking condos? He said he could not answer.

"The idea is they will keep the market open and build residential around it," he said. "They are currently evaluating what is the highest and best use for that land."

Patch replied that Little Silver residents may not react favorably to new housing construction.

"They are all residents of the area, they know that area," he said, referring to the 1663 trio. "They all believe having the market re-open enhances the value of the property for residential purposes. I also know they have already talked to the town of Little Silver (about building residential)."

Are 1663 Partners personal friends of the Sickles?

No, said Stolz. He said they simply are a trio of local residents who heard Sickles, a local institution, filed for bankruptcy. After finding Sickles' bankruptcy filing online, they contacted Stolz, who put them in touch with his client, Bob Sickles, Jr.

What happens next?

Now that a federal judge approved the "1663 Plan" to move forward, it will have to be proposed to everyone who is owed an outstanding debt from Bob Sickles. This includes all the employees who worked for him, the bank, and all the meat and vegetable companies who have not been paid for food deliveries (they are owed $1.3 million combined), plus other creditors.

For the 1663 plan to go through, a majority of those parties — two thirds — need to approve it, with an understanding that some or all their debts will be paid to them, said Stolz.

"The former employees of the market and the liquor store will be paid in full for the wages they are owed," said Sickles' lawyer. "They will absolutely be paid in full. Sickles has made clear from the very beginning of all this that all employees will be paid. There are other creditors they may attempt to negotiate with. There are some claims we are likely to dispute, and they will either be paid in full, or paid an amount they will accept."

While all this is happening, the Sickles family is also trying to prevent the bank from foreclosing on their Rumson home before the 1663 deal goes through: Last week, Northfield Bank filed a motion to start foreclosure proceedings on the Heathcliff property. Genova Burns filed an objection motion Tuesday. Stolz and his team argue that the 1663 plan is the only way to keep the Sickles in their home.

"We believe they have more than adequate collateral, and we are hopeful and confident the judge will deny their motion," said Stolz.

"The Sickles family ran this market from 1908 until the COVID crisis hit," said Stolz. "For years, they supported themselves, their employees and the community. Then they opened up the Red Bank offshoot, an extraordinary financial strain that happened exactly at the time COVID hit. Nobody left their houses. Every business suffered. All of these factors converged for people who for years had operated successfully and profitably. They fell into a financial black hole they could not get out of."

Last Wednesday's wowzer: New Owner Attempts To Take Over, Reopen Sickles Market (Aug. 21)

Additional details Friday: More Details Revealed About Proposed Sickles Land Deal (Aug. 23)