By Stephen Appezzato
LITTLE SILVER – Sickles Market, the 116-year-old grocery store and garden center that closed its doors suddenly in March due to financial troubles, could return under new ownership. A document introducing one plan to revive the borough staple received approval in the U.S. Bankruptcy Court District of New Jersey Tuesday, allowing the proposal to progress for further review.
According to the memorandum of understanding (MOU), since he filed for Chapter 11 bankruptcy in May, Sickles Market owner Bob Sickles Jr. has received numerous inquiries from parties interested in purchasing the company and the land tied to it.
In particular, the MOU references one partnership among Sickles’ business entity AHS Realty, LLC, an “investment vehicle” called 1663 Partners, LLC and Newco, a company that could take ownership of AHS’ assets, which include businesses in Little Silver and Red Bank, five acres surrounding Sickles Market including the house at 5 Harrison Ave. in Little Silver, TST Beverages, LLC (the liquor license and company tied to Bottles by Sickles) and the Sickles’ home in Rumson. Under this plan, 1663 Partners would provide the financial backing to transfer AHS’ assets to Newco.
According to Sickles’ attorney in the matter Daniel M. Stolz, a partner of Genova Burns LLC, the MOU approval was the first step in the restructuring process. Now, a more detailed plan must be submitted to the court. A two-thirds majority of those owed money by Sickles – including vendors, former employees and creditors – must also vote to sign off on the plan.
In the MOU, Rumson residents Jennifer Griffin Karp, Dennis Devine and Timothy McCooey are cited as “principals” of 1663. At this time it is unknown who operates Newco, which could just be a temporary business name.
According to the MOU, “Each of the prospective purchasers/plan proponents with whom the Debtors have conducted discussions have indicated that reopening of the Sickles Market will enhance the value of the Little Silver Property.” Each proposal has also indicated that the house abutting Sickles Market at 5 Harrison Ave. should be knocked down to free up space for possible residential development.
The MOU further states the prospective buyers recognize that the development of the Little Silver property will require various zoning approvals from the borough, and “Because of the Township’s need to comply with affordable housing laws, there may be public resistance to these zoning approvals.”
“Although this process might take some time, the Debtors, their professionals and the prospective purchasers/ plan proponents are all confident that the approvals will be ultimately obtained,” it reads.
Under the MOU, Sickles Jr., his two daughters and a former Sickles Market employee would execute employment contracts with the new companies and be entitled to salary and benefits. Sickles and his wife would also be allowed to reside at their Rumson residence without paying Newco rent for a period of time, with an option to later repurchase the property.
Sickles Market made headlines earlier this year after it abruptly closed its Red Bank grab-and-go location in February, its flagship Little Silver store in March and filed for Chapter 11 bankruptcy in May. According to the MOU, creditor Northfield Bank holds a $5.3 million lien on Sickles’ assets, while Bluestone Capital, a merchant lender, holds a $532,000 mortgage on the 5 Harrison Ave. property, which is located across the parking lot from Sickles’ Little Silver store. In addition to accruing real estate taxes, Sickles Jr. is responsible for $800,000 in unpaid sales tax, $1.3 million in claims related to merchant cash advances, $300,000 in wage claims and $150,000 in personally guaranteed debt.
The article originally appeared in the August 29 – September 4, 2024 print edition of The Two River Times.
