Bankruptcy Bubble Bonanza in the Big Apple
- Joshua M Brown
- June 8th, 2009
The bankruptcy boom has kept New York law firms and restructuring shops humming throughout the downturn as companies and whole industries have fallen apart.
From Crain's New York:
The 1,217 corporate bankruptcy filings in New York's Southern District so far this year are nearly double the number filed in second-place Delaware over the same period, the two courts' records show.
The law firms involved with these deals are going gangbusters right now, but frankly, I believe the GM Chapter 11 (which was filed in NY incidently) represents the top in yet another overheated bubble.
So far this year, the Southern District has logged twice as many filings as there were during all of last year. Remember: It's only June.
I have some bankruptcy attorney friends who believe the money train will never stop. I beg to differ.
Below is my chart of the top NYC bankruptcy/ restructuring firms along with who I believe will be the biggest victims of the eventual bursting of the BK Bubble, their neighborhood steakhouses.
Now you might ask yourself, "what kind of a lunatic thinks this way?" or "why are you picking on the steakhouses?".
The answer to the first question is that TRB is one-of-a-kind. The answer to the second question is that there is no greater manifestation of someone in New York feeling flush than the amount of dinners and lunches at the local steakhouse. When the good times are rollin', you can bet that the cabernet is flowin' and the steaks are sizzlin' in this town, end of story.
And if in fact General Motors' long-overdue bankruptcy does signal the zenith of the bk boom, you can bet that receipts will be down from these firms at each of the restaurants cited. This will be helpful for those in recovering industries (advertising/ banking/ brokerage/ insurance/ real estate) looking to get decent reservations...not that Daddy ever has a problem hitting up Bobby Van's when the urge comes over me!
Editorial Note: It's been pointed out to me by intrepid reporter Hilary Potkewitz that Mark Jospeh is not, in fact, the nearest steakhouse to Weit Gotshal, rather it would be Uncle Jack's Steakhouse. I would make the correction to the chart except I'm too lazy/ busy.
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The Reformed Broker is a blog about financial markets and the economy. Joshua Brown is a New York City-based investment advisor for high net worth individuals, charitable foundations, retirement plans and corporations... More.