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Recent legal action taken against Pergament Home Centers may force the struggling retail chain into bankruptcy. Baldwin business leaders, merchants, and residents are worried about losing the largest store in the Baldwin Shopping Center on Grand Avenue and the effect that would have on other local retail businesses.
The bankruptcy fears stem from a petition filed on Feb. 1 in a federal Bankruptcy Court by three landlords who say that Pergament owes them back rent. The landlord's attorney, Michael Brofman, said that the bankruptcy petition was not intended to drive Pergament out of business.
We didn't seek to liquidate Pergament, said Brofman. That's not what we're doing.
Brofman said that by making Pergament reorganize under Chapter 11 bankruptcy laws, the landlords hope to force Pergament to pay what they supposedly owe.
And if they did not pay their rent they would have to get out, said Brofman.
Pergament had 20 days to respond to the bankruptcy petition.
It would be heartbreaking to the community, said Baldwin Chamber of Commerce member Linda Degen about the prospect of losing the store. We were thrilled when we heard Pergament was coming.
Degen said the building Pergament occupies had been vacant since the Key Food supermarket moved out three years ago. Local businesses and shoppers had hoped that the presence of an established franchise like Pergament, which opened in Baldwin last fall, would help attract other big-name stores to the area.
Degen is afraid of what it would mean to the shopping center and its merchants if the store left. It would be a disaster, said Degen. It would have a horrendous impact on that mall.
Other chamber members preferred to wait until Pergament decides how it will respond to the suit before they push the panic button.
It's unfortunate that the chain itself is having problems, said Chamber President Ginnie Foley. We waited a long time for the building to be occupied. We hope they stay.
Chamber member Doug Diana said that the chamber has heard the rumors about Pergament's financial troubles and admitted that there is cause for worry. Anytime there is uncertainty there is concern, said Diana, who also recognizes Pergament's importance to the shopping center. Remove [Pergament] and there is nothing there.
Carmela Ragucci, co-owner of Grand Unisex Barbers located in the shopping center, said she is concerned but has reason to be optimistic. Ragucci said she has spoken with several Pergament employees who told her that the store wasn't going anywhere.
They say they were told that they are going to close some of the larger stores and keep the smaller, express stores open, said Ragucci. I hope that store doesn't sit empty again.
A gag order has been placed on employees at the Baldwin branch. Pergament headquarters did not return several calls from The Herald.
Ragucci's partner, Joe Campagnuolo, is less concerned. He said the presence of Pergament hasn't done much for business anyway.
Shoppers taking advantage of Pergament's recent blowout
The bankruptcy fears stem from a petition filed on Feb. 1 in a federal Bankruptcy Court by three landlords who say that Pergament owes them back rent. The landlord's attorney, Michael Brofman, said that the bankruptcy petition was not intended to drive Pergament out of business.
We didn't seek to liquidate Pergament, said Brofman. That's not what we're doing.
Brofman said that by making Pergament reorganize under Chapter 11 bankruptcy laws, the landlords hope to force Pergament to pay what they supposedly owe.
And if they did not pay their rent they would have to get out, said Brofman.
Pergament had 20 days to respond to the bankruptcy petition.
It would be heartbreaking to the community, said Baldwin Chamber of Commerce member Linda Degen about the prospect of losing the store. We were thrilled when we heard Pergament was coming.
Degen said the building Pergament occupies had been vacant since the Key Food supermarket moved out three years ago. Local businesses and shoppers had hoped that the presence of an established franchise like Pergament, which opened in Baldwin last fall, would help attract other big-name stores to the area.
Degen is afraid of what it would mean to the shopping center and its merchants if the store left. It would be a disaster, said Degen. It would have a horrendous impact on that mall.
Other chamber members preferred to wait until Pergament decides how it will respond to the suit before they push the panic button.
It's unfortunate that the chain itself is having problems, said Chamber President Ginnie Foley. We waited a long time for the building to be occupied. We hope they stay.
Chamber member Doug Diana said that the chamber has heard the rumors about Pergament's financial troubles and admitted that there is cause for worry. Anytime there is uncertainty there is concern, said Diana, who also recognizes Pergament's importance to the shopping center. Remove [Pergament] and there is nothing there.
Carmela Ragucci, co-owner of Grand Unisex Barbers located in the shopping center, said she is concerned but has reason to be optimistic. Ragucci said she has spoken with several Pergament employees who told her that the store wasn't going anywhere.
They say they were told that they are going to close some of the larger stores and keep the smaller, express stores open, said Ragucci. I hope that store doesn't sit empty again.
A gag order has been placed on employees at the Baldwin branch. Pergament headquarters did not return several calls from The Herald.
Ragucci's partner, Joe Campagnuolo, is less concerned. He said the presence of Pergament hasn't done much for business anyway.
Shoppers taking advantage of Pergament's recent blowout
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