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The Former Owner of Pacha NYC Might Buy Verboten

The club has allegedly been put up for auction.

by Krystal Rodriguez
Jun 10 2016, 6:02pm

Photo by Oliver Correa for Verboten

Troubled Williamsburg club Verboten is being auctioned off by its owners, Jen Schiffer and husband Jon Perez, as a means to pay off their debts, Gothamist reports. According to legal documents obtained by the outlet, multiple parties have bid on the popular house and techno haven, with one standout name being Eddie Dean, the former owner of now-closed NY venue Pacha. Dean is a managing member of 54N11BK, LLC, the party that filed a lease purchase agreement with Verboten amounting to $400,000.

Other offers are on the table, including one higher than 54N11BK 's, but it reportedly hinges on modifications to the agreement. Gothamist also reports that a letter from one of Verboten's investors indicate that investors and former employees may also submit a bid with intent to "purchase the assets out of bankruptcy and fund a continuation of the Brooklyn Events business in a new corporation." The deadline to submit a bid is on July 13, with court hearings proceeding on July 20.

The club's future has been uncertain since the owners were accused by investors of fraud and mismanagement earlier this year. In March, the club was seized by the New York State Department due to Schiffer and Perez failing to hand over $360,000 in sales taxes. Despite filing for Chapter 11 bankruptcy, and Schiffer being arrested soon after for allegedly passing bad checks, Verboten's doors re-opened in April.