Several of New York City’s best-known theater-district restaurants have cleared a major hurdle toward new ownership. On October 22, a federal bankruptcy judge approved a $22.2 million sale involving Café Fiorello, Trattoria Dell’Arte, Bond 45 and other longtime Manhattan dining spots.
The businesses behind those restaurants are part of the Fireman Group. Its lead debtor, S.M.F. Group Inc., and 21 affiliated companies filed Chapter 11 on August 9, 2026, in the Southern District of New York. The troubles followed years of financial pressure and the earlier closure of Redeye Grill after 30 years.
An auction win becomes a court-approved deal
FHG Acquisition LLC, a Landry’s affiliate, initially offered $9.5 million for restaurant assets. After an October 5 bankruptcy auction, the winning bid grew to $22.237 million in cash, plus certain costs and assumed obligations.
Judge Shireen A. Barday held the sale hearing October 21 and entered the approval order the following day. The official bankruptcy docket records the order. That is a significant step beyond winning an auction: the purchaser now has court authorization to proceed under the approved agreement.
Landry’s is expected to control Café Fiorello opposite Lincoln Center, Trattoria Dell’Arte near Carnegie Hall and Bond 45 in the Theater District. Industry reports identify Ciao Hospitality and TREW Capital as participants in plans for other venues, including Brooklyn Diner, Brooklyn Delicatessen, Paris Bar and Le Jardin.
These aren’t interchangeable storefronts. They are longtime gathering places for Broadway audiences, concertgoers and visitors, with reputations built over decades. Their potential continuation is especially meaningful after other restaurants in the group closed.
How the restaurant empire ran into trouble
Founder Sheldon “Shelly” Fireman built the group around prominent New York cultural destinations. But debt, pandemic-related business interruptions and disputes with merchant cash advance lenders strained the company before it sought bankruptcy protection.
The group’s restructuring officer said payment processors withheld at least $6 million in card receipts amid lender disputes. The debtors entered Chapter 11 with less than $100,000 of available cash, according to their account of the financial crisis.
At the August filing, the group reported nine operating restaurants across New York and Washington, D.C., and more than 800 employees. Those numbers describe the business at the filing date, not how many locations or jobs the buyers ultimately will keep.
What the approval does not guarantee
The sale order gives the purchaser flexibility over particular restaurant leases and contracts, including a period after closing to decide which agreements to assume. The deal also allocates certain employee and vendor obligations between the buyer and the bankruptcy estates.
A judge’s approval authorizes a transaction; it does not itself transfer ownership or guarantee that every dining room will remain unchanged. For customers, the important development is that several recognizable New York restaurants now have a court-approved route to continue under new operators.
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