Blue Moon Sunsets into Bankruptcy

Posted on: March 31st, 2022 at 5:09 am by

The sun sets on the Blue Moon Hotel.

Efforts to diversify the Lower East Side lodge with convenient online registration system and onsite amenities apparently weren’t enough to save the business. Owner, Randy Settenbrino, declared Chapter 11 Bankruptcy protection, according to recent reports.

The Blue Moon – fashioned out of an 1879 tenement – had struggled in recent years, even before the onset of the Covid-19 pandemic.

The property, which had been placed for sale many times over the last fifteen years, racked up $11.2 million in liabilities, according to the bankruptcy filing.

As reported, the Settenbrino family was still strained by the initial monetary outlay to restore the building. The tax and expense burden compelled the owners to lease out the property to a hostel (El Idi) for the last five years, which was an error in hindsight. That arrangement allegedly led to the disassembly and disposal of many fixtures and artifacts of the original renovation. Coupled with the pandemic-induced closure for sixteen months, the costs of revival became nearly insurmountable.

There was also a brief flirtation with the city to convert the Blue Moon into a homeless shelter, but those controversial plans never materialized, thanks in part to legal action.

Instead, Settenbrino kickstarted a crowdfunding campaign last fall to stay alive and an attempt to diversify.

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