ABC Carpet affiliate files for bankruptcy following Normandy’s $7.3M rent suit

By Adam Pincus

ABC Carpet & Home’s special purpose real estate entity filed for bankruptcy protection yesterday the same day that its landlord Normandy Real Estate Partners sued ABC Carpet in Manhattan State Supreme Court seeking $7.3 million in back rent.

The home furnishing company ABC Carpet in 2017 sold its fee and leasehold positions in 888 Broadway and the adjoining 38 East 19th Street to Normandy for $133 million, then leased back as tenant portions of the two buildings in a 10-year deal that included extension options. ABC continues to own a 20,600-square-foot retail condo in 888 Broadway.

The entity that signed the lease for ABC Carpet, Amma421 LLC, is the entity that filed for bankruptcy.

The filing said the entity had assets less than $50,000 and liabilities of $1 million to $10 million. The individual who signed was the managing member, Paulette Cole, who is owner of ABC Carpet.

The filing included very little information and it is likely the petitioner will file additional papers.

In Normandy’s suit, which is only a summons not a complaint, the firm says, “The relief sought is money damages arising out of AMMA’s breaches of the agreements, including but not limited to AMMA’s default of its obligations to pay rent.