Renowned restaurant chain on the brink of bankruptcy: debts and lawsuits seal its fate

The veteran restaurant chain "Fireman Group" (S.M.F Group Inc.), which operates, among others, the iconic "Cafe Fiorello" restaurant, has filed for bankruptcy protection (Chapter 11) in a New York bankruptcy court. The filing was made after the group accumulated massive debts of over $39 million, against assets valued at only over $26 million.

The chain was founded 63 years ago, in 1963, by the renowned restaurateur Sheldon "Shelly" Fireman. Over the years, the group's restaurants—including "Bond 45", "Brooklyn Diner", and "Cafe Fiorello" near Lincoln Center—became an inseparable part of the New York scene and a magnet for Broadway theater lovers and tourists. The death of founder Fireman in October 2025 came in the midst of an especially tense period for the business.

The group's financial difficulties began even before the COVID-19 pandemic due to construction budget overruns and fire damage, but the lethal chain of lockdowns, the paralysis of Broadway, and the decline in tourism dealt a fatal blow.

To survive, the company turned to emergency loans and subsequently took on difficult loans of the Merchant Cash Advance type at suffocating interest rates. Repaying the installments consumed a significant portion of the revenue, led to arrears in rent and tax payments, and eventually developed into legal claims from lenders.

"In view of the immediate inability to continue operations, the company filed the request to stabilize operations and restore access to its revenues," stated restructuring consultant Jordan Myers in a report submitted to the court.

The group is now trying to raise emergency funding of about $6.5 million. Currently, it still owns 9 active restaurants in New York and Washington, after having been forced to close two additional branches just last July.