Update [12.30PM March 31]: The tax department confirmed it seized Verboten last night and that the business owes the state $360,378.05 in sales tax.
Verboten, the New York nightclub embroiled in allegations of financial mismanagement, was seized by New York state authorities on Wednesday night for not paying sales taxes.
Jen Schiffer, Verboten's owner, confirmed with THUMP the club had been seized but declined to comment further. A spokesperson from the tax department also confirmed that the business is currently in possession of the state, which is working with Verboten's owners to find a way to resolve the debt. "Hopefully we will work out a way to return them the keys so they can reopen the business," the spokesperson said.
A picture of a red notice that said the New York State Department of Taxation and Finance had seized the property in Williamsburg for nonpayment of taxes was posted by @RobbieLumpkin on Twitter. The promoter from neighboring club Output tweeted the picture, saying: "Wishing the best to our friends and family at Verboten. They've given us a lot of great memories over the many years."
The tax department spokesperson confirmed that Verboten currently has three open warrants for sales tax that total $360,378.05. The publically searchable tax warrants database has the figure as over half a million dollars, but that information is not the most up-to-date.
In the allegations investors have brought against the club in January, they claimed the owners, Schiffer and John Perez, failed to pay state sales taxes, as well as withholding taxes for foreign DJs.
The Rite of Wednesdays show that had been slated to take place at Verboten on Wednesday night was moved to Halcyon inside Output.