Here Is A Full Outline Of Sickles' Dec. 6 Bankruptcy Filing

LITTLE SILVER, NJ — Patch obtained a copy of the most recent Sickles Market bankruptcy filing, filed last Friday in U.S. bankruptcy court.

Here is a summary of the filing:

Bottles by Sickles liquor store filed for Chapter 11 bankruptcy reorganization first, in April, and Sickles Market filed in May. Their bankruptcy cases have been pending in the courts for seven months and the court extended Sickles' deadline for filing a plan of restructuring to November 22.

On that date, Bob Sickles, Jr. and 1663 Partners officially presented their plan of reorganization to a U.S. bankruptcy judge: Their plan is that 1663 Partners will purchase Sickles Market, the six acres on which it sits, an adjoining lot of land (5 Harrison Ave.) and Sickles' private Rumson home. 1663 will reopen the market. 1663 will hire Sickles, Jr. and his daughters to run at the market, plus previous market manager Maria Carrigan. Sickles, Jr. will be paid $200,000, Tori Sickles $150,000, Carrigan $125,000 and Sasha Sickles $100,000.

How much will 1663 pay for this? "1663 commits, subject to the terms of the plan, to fund not less than $8.5 million and not more than $9 million," read the Dec. 6 filing.

All the creditors owed money by Sickles (the banks, the produce companies, butchers and alcohol companies) will be repaid.

As per standard bankruptcy proceedings, all the creditors will be asked to vote on whether or not they approve the 1663 restructuring.

However, at least two parties filed objections to the 1663 Partners' plan; they are: Metrovation, the owner of the Anderson building where Bottles/Provisions was located, and Northfield Bank, which has a lien against the market and the Rumson home where Sickles, Jr. and his wife live.

Those objections were filed as recently as Monday of this week.

Hon. Christine Gravelle is the federal judge who will ultimately decide if the 1663 Partners plan can proceed, and if Sickles will re-open.

"Robert H. Sickles and AHS Realty believe that this joint plan of reorganization is in the best interest of the creditors and that the plan is fair and equitable," read the Dec. 6 filing. "Robert H. Sickles and AHS Realty, LLC urge that the voters accept the plan."

It remains unknown what Judge Gravelle will decide; the earliest she would make a decision is in February.

In his bankruptcy filing, Sickles said he has $10.9 million in assets and $7.5 million in liabilities. The 1 Harrison Avenue property where Sickles Market sits was valued at $7.9 million, according to a March 2024 appraisal done by Northfield Bank, which holds the mortgage on the market.

Chapter 11 bankruptcy is also known as reorganization bankruptcy and it is a way to allow a company to reorganize their finances, pay off their debts and continue stay in business. The Sickles family has always said this is its goal.

Events leading to the Chapter 11 bankruptcy filing

Directly from the Sickles family, here is how they account for the demise of their 116-year-old family business. The following is directly from the Dec. 6 bankruptcy filing:

"In 2019, the Sickles family determined to open a second market and a liquor store in Red Bank. Funding for the Red Bank market and the liquor store was provided through a $2.5-million commercial mortgage loan and a $1.1 million line of credit from Two Rivers Bank."

Bottles and the Red Bank Market officially opened on August 6, 2020.

"Unfortunately, the opening of Red Bank Market and Bottles faced a number of issues, including coinciding with the height of the COVID pandemic. Availability for parking of customers of Bottles and the Red Bank Market proved to be substantially less than the landlord (Metrovation, owner of the Anderson Building where Provisions was located) had suggested it would be. Moreover, as the COVID pandemic increased, foot traffic from commuters decreased."

"It became difficult to find experienced food retail labor workers due to the COVID pandemic. Labor and other costs across all entities increased while revenue across all entities decreased. At the height of the pandemic, sales at the Sickles Market averaged 20% below pre-pandemic levels. Simultaneously, the pandemic essentially choked the opening and prospects for the Red Bank Market and Bottles. The pandemic also delayed the expansion by the town of Red Bank into the location of the Red Bank Market and Bottles, further heightening losses and reducing foot traffic at the Red Bank location for both the Red Bank Market and Bottles."

"Due to the consumer behavior changes after the COVID pandemic, the Red Bank Market and Bottles never accumulated the foot traffic and commuter traffic planned for that space. With a lease already signed with Metrovation, and personally guaranteed by Robert H. Sickles, there was no choice but to move forward into a retail climate that was not suited to a very expensive $34 per square foot of rent to which the Red Bank Market and Bottles were bound."

"The operating losses of the Sickles Market, Red Bank Market and Bottles were huge. With the hope that the end of the COVID pandemic would restore the Sickles Market, Red Bank Market, and Bottles to profitability, the Sickles entities refinanced the Two Rivers loan through Northfield Bank."

However, despite refinancing, Sickles ultimately defaulted on the loans.

"Unfortunately, even with the Northfield funding, the entities were unable to stem the tide of losses. The Sickles family utilized every resource available to them, including Robert H. Sickles’ 401(k) account, to attempt to keep the 'ships afloat,'" read the filing. "The losses continued and rent to the Red Bank Market and Bottles landlord (Metrovation) became significantly delinquent. A decision was made that the Red Bank Market would have to close as there was no prospect that the losses at Red Bank Market would cease. The Red Bank Market closed on February 15, 2024."

"In March of 2023, the situation at the Sickles Market also became financially unmanageable. On March 11, 2024, after 116 years of continuous operation, the Sickles Market in Little Silver due to its inability to make payroll. Bottles closed shortly thereafter, on April 17, 2024, and filed the Bottles bankruptcy, on April 23, 2024."

Sickles Market was first opened by Harold Sickles and his wife Elsie in 1908.

The top six banks or companies that say Sickles owes them money are:

• Northfield Bank, says they are owed $4.5 million
• Farmlind Produce, says they are owed $213,000
• Core Funding Source, LLC, says they are owed $180,000
• C. Rooney Produce Company of Ocean Bright, says they are owed $100,000
• Four Seasons Produce, says they are owed $90,000
• Metrovation Anderson LLC, Sickles' former Red Bank landlord, says they are owed $329,000 in unpaid rent.

If Judge Gravelle approves the plan, 1663 Partners will own:

• 100 percent of the equity of the six-acre parcel of real estate at 1 Harrison Avenue in Little Silver. This is the six acres on which the market sits.
• 100 percent of the equity of Sickles Market, LLC
• 100 percent ownership of the real property located at 5 Harrison Avenue, including a vacant house on the lot. This is a nearby lot that was owned by the Sickles family.
• Sickles' private home in Rumson, which he can live in rent-free and will have the option to buy back.

Dan Stolz is the lawyer from Genova Burns representing Sickles in its bankruptcy, and attempts to restructure/reopen.