Choice Market’s former 1737 E. Evans Ave. location. (Courtesy of Choice Market)
As it goes out of business, Choice Market is receiving some past-due bills from landlords.
The grocer announced Oct. 4 that it had closed its last stores, at 1770 N. Broadway in Uptown and 939 Bannock St. in Golden Triangle. It told a bankruptcy judge that it would be pivoting from a Chapter 11 reorganization to a Chapter 7 liquidation, if the court will allow it to.
Now, with Choice’s time growing short, the owners of those two properties want to get paid.
Greystar, the real estate giant that owns 939 Bannock St., told the U.S. Bankruptcy Court on Oct. 21 that Choice has made only one rent payment since September 2023, owes $172,000 in back rent and fees, and is refusing to end the lease and leave 939 Bannock St.
Choice “has essentially forced Landlord to involuntarily finance its bankruptcy case at significant expense and detriment to Landlord,” Greystar’s lawyer said. “(Choice) should not be allowed to not pay rent and … leave the premises as an unproductive wasting asset.”
Greystar said it was misled into believing that Choice would obtain financing, restructure and pay its rent bills. Choice has said that financing fell through, causing its closure.
“It’s not that we’re not leaving the space. I want to make that clear for sure,” Choice CEO Mike Fogarty said by phone last week. “There’s no contentious issues here about us not exiting the space. We’re just navigating the Chapter 7 process at this point.”
That includes working closely with Greystar and a company that is considering purchasing some or all of Choice’s assets and moving into 939 Bannock St., according to the CEO.
“There’s a chance that they could find a new tenant pretty quickly,” Fogarty said. “Hopefully.”
Greystar isn’t opposing Choice’s transition from Chapter 11 to Chapter 7, but it wants Judge Joseph Rosania to force Choice to pay $56,550 in back rent before it liquidates. Choice has until Nov. 6 to respond. A hearing on the matter has been set for mid-November.
Meanwhile, one day after Greystar made its case, Choice’s landlord at 1770 N. Broadway sued Fogarty for breach of contract. Equity Apartments in Chicago said Fogarty guaranteed Choice would pay its rent and not break its lease, but now he has broken both promises. The lawsuit doesn’t state how much Choice allegedly owes.
Fogarty said that he expects the matter to be resolved through the bankruptcy process.
Choice Market’s former 1737 E. Evans Ave. location. (Courtesy of Choice Market)
As it goes out of business, Choice Market is receiving some past-due bills from landlords.
The grocer announced Oct. 4 that it had closed its last stores, at 1770 N. Broadway in Uptown and 939 Bannock St. in Golden Triangle. It told a bankruptcy judge that it would be pivoting from a Chapter 11 reorganization to a Chapter 7 liquidation, if the court will allow it to.
Now, with Choice’s time growing short, the owners of those two properties want to get paid.
Greystar, the real estate giant that owns 939 Bannock St., told the U.S. Bankruptcy Court on Oct. 21 that Choice has made only one rent payment since September 2023, owes $172,000 in back rent and fees, and is refusing to end the lease and leave 939 Bannock St.
Choice “has essentially forced Landlord to involuntarily finance its bankruptcy case at significant expense and detriment to Landlord,” Greystar’s lawyer said. “(Choice) should not be allowed to not pay rent and … leave the premises as an unproductive wasting asset.”
Greystar said it was misled into believing that Choice would obtain financing, restructure and pay its rent bills. Choice has said that financing fell through, causing its closure.
“It’s not that we’re not leaving the space. I want to make that clear for sure,” Choice CEO Mike Fogarty said by phone last week. “There’s no contentious issues here about us not exiting the space. We’re just navigating the Chapter 7 process at this point.”
That includes working closely with Greystar and a company that is considering purchasing some or all of Choice’s assets and moving into 939 Bannock St., according to the CEO.
“There’s a chance that they could find a new tenant pretty quickly,” Fogarty said. “Hopefully.”
Greystar isn’t opposing Choice’s transition from Chapter 11 to Chapter 7, but it wants Judge Joseph Rosania to force Choice to pay $56,550 in back rent before it liquidates. Choice has until Nov. 6 to respond. A hearing on the matter has been set for mid-November.
Meanwhile, one day after Greystar made its case, Choice’s landlord at 1770 N. Broadway sued Fogarty for breach of contract. Equity Apartments in Chicago said Fogarty guaranteed Choice would pay its rent and not break its lease, but now he has broken both promises. The lawsuit doesn’t state how much Choice allegedly owes.
Fogarty said that he expects the matter to be resolved through the bankruptcy process.
