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Thatched Cottage Seeks Bankruptcy Protection

Centerport caterer, citing storm losses, says it will remain open.

The Thatched Cottage. File Photo.
The Thatched Cottage. File Photo.
The Thatched Cottage is seeking bankrupty protection, citing unrecouped losses stemming from storms in the last two years.

The Centerport catering facility, which has been in business for 26 years, has served as the waterfront setting for numerous local organizations events, from the Huntington Republican Committee to Huntington Hospital's Bash on the Bay to the local chapter of the NAACP.

Losses from damaged caused by Hurricane Irene in 2011 and Superstorm Sandy in 2012 total in the millions, the restaurant said, while FEMA loans and insurance reimbursements have not been resolved. 

The restaurant at 445 East Main St., filed under Chapter 11 to remain open while it restructures.

“While
 we 
worked 
tirelessly 
to
 repair
 the 
damage 
from 
these 
devastating
 storms,
our 
first 
priority 
was 
always 
to 
continue 
creating 
memorable 
events 
for 
our
 clients,”
 owner Ralph 
Colamussi
 said. 
“Seeking
 protection 
under 
Chapter
11
 will
allow
 Thatched 
Cottage
 Caterers 
to 
deliver
 on
 parties
 already
 booked,
 and
continue
 to
 plan 
events 
for 
future 
dates. 
Our 
objective 
is
 to 
continue
 to 
create
amazing 
events
 with
 no 
interruption
 to
 any
new
 or
 scheduled 
events." 

Attorney Avrum Rosen said the business was granted approval Monday in U.S. Bankruptcy Court to continue operating. He said he anticipates filing a plan to come out of the bankruptcy protection within the next 90 to 120 days. "People should not be nervous;  we're in the process of obtaining insurance proceeds that were slowed down for a whole bunch of reasons," he said. "We're open, we're operating." 

He said those with events scheduled at the facility should call 631-261-1900 for questions.

Jennifer January 06, 2014 at 06:07 PM
This all sounds so sweet and innocent but who is to say that nothing is going to change. People book this place mainly on the food reviews. Would you chance having your wedding here if it's still a year away? If they are having money issues that usually means major changes...the staff being one of them.
Susan Simon January 06, 2014 at 06:28 PM
This is the old story of "not my fault". This is not the first time they've been in this situation and I'm sure it won't be the last. My brother did work for them and said their damage from the storms was minimal. He also said that there was minimal damage from Sandy and then all of a sudden there was a huge amount of damage from Sandy. Everyone else bounced back except for them? In the process, when they supposedly had no capital, they opened Jellyfish next door. I believe they also owe money out to private lenders. Good luck with that.
JD Daniels January 07, 2014 at 12:04 PM
My fiancé Richard and I are getting married on September 6th and our reception is at Thatched Cottage. I too was concerned I called and spoke to the owner and I am confident that all will go as planned. Seems like this is a strategic business move and has little to do with daily operations and quality. As a matter of fact the bankruptcy court is sending me a letter securing my money and date. They have been there a very long time and I feel a great sense of comfort and trust. We are not going to lose sleep. Call and speak to the owner Ralph, you will feel better.
G January 07, 2014 at 12:07 PM
I wouldn't cry for the banks that will ultimately end up owning this and the real estate, which is probably valuable. I'm sure Jellyfish was opened as a separate entity so that the owners could still operate a restaurant on the harbor once they lose Thatched cottage to the banks.
Susan Simon January 07, 2014 at 04:38 PM
Word of advise to the bride and her fiancé Richard. Don't count your chickens before they hatch. If you were an owner, would you say to book your wedding somewhere else? I think not. Look at the catering hall in Medford that closed its doors the day before events. At least you have 9 months to fix your issue. They had 24 hours.
G January 08, 2014 at 01:14 PM
Apparently there was some judicial decision in November between Ralph and Lloyd's of London (most coastal real estate on Long Island is reinsured through Lloyd's since it's high risk). Funny how he filed bankruptcy right after this, no?
G January 08, 2014 at 01:14 PM
Bethpage Federal Credit Union is among the bankruptcy creditors.
Jennifer January 08, 2014 at 07:22 PM
G- what does the Loyd's of London post exactly mean? Hoping you could explain.
G January 09, 2014 at 12:52 PM
Lloyd's of London would be the insurance company, per se. High risk coverage is often underwritten in the Lloyd's marketplace where private investors pool their money (syndicates) to back specialized risks. So the Thatched Cottage probably had property insurance that was underwritten though Lloyd's and the court action was probably related to Sandy damage. In actuality, a lot of Long Island homeowners don't realize that they are insured through Lloyd's as well. Many of the higher priced "specialized" property insurance sold for homes along the coast that other insurers won't touch (State Farm, Allstate, Hartford, etc...) are actually sold through shell companies with no claims paying ability themselves; they just reinsure that risk in the Lloyd's market. If there is a claim, it's actually paid by the Lloyd's syndicate through the shell company. One way to tell if you are insured through a shell company is to look for insurance ratings through a legitimate entity (S&P, Moody's, AM Best). Many of the shell companies don't get good ratings from these guys, so they publish ratings from some second rate shop. It's a clear tell.
Jennifer January 09, 2014 at 04:17 PM
I wish I was business saavy. Is it fair to say that keeping money there for a future event would be a gamble?
Adam D. January 09, 2014 at 04:47 PM
Oh man, that's terrible! I wish them and their brides the best of luck. My wife and I attended a showcase here many moons ago. We ultimately chose a place in Smithtown, where we live now. If you're in need of a place, Stonebridge Country Club was great! Again, best of luck!
JD Daniels January 09, 2014 at 05:06 PM
Actually I spoke to a court rep, all money is held in escrow by a city ordered Trustee so that's good.
Susan Simon January 09, 2014 at 05:23 PM
Lol. Really, ask the people who were booked at Manor East, The Waterview Club, Vina de Villa if they got their money back. What kills me is that people would actually take the chance and continue to book. There's a lot of catering halls out there, especially on the North Shore in Suffolk County.
Dennis Michael January 12, 2014 at 02:02 AM
@JD Daniels who from the court did you speak with stating your money is being held in escrow? I have my wedding planned their for October 2014. I found this out about the Chapter 11 earlier this evening and it's a tad alarming.
Maya DeSantis January 18, 2014 at 06:45 PM
I took my losses with this venue and moved on,. I rather have lost a small deposit than thousands at a later time. We just booked Villa Lombardi's in Holbrook, and got similar menu and pricing. My fiancé is a NYPD, and surprisingly my sales associate gave us a discount just for that! The place is beautiful, fresh new ballrooms, and gorgeous grounds. The food reviews are over the top! I'm so excited! If your not sure where to begin you cannot go wrong with Villa Lombardi's.. a well established venue that is pure excellence.

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