Jeffrey Simpson files bankruptcy for Arch Companies entity

Jeffrey Simpson, the co-founder along with Jared Chassen of the real estate development and ownership firm Arch Companies, filed a petition to place the entity JJ Arch LLC, the original managing member of the main holding company, into bankruptcy protection. Simpson filed the petition in U.S. Bankruptcy Court in Manhattan March 7, 2024.
Case 24-10381 LINK
JJ Arch chapter 11 pdf

Arch Companies once had a large portfolio, which Simpson in an earlier court filing estimated to be worth $500 million. In this new bankruptcy filing, he estimates the holdings of JJ Arch LLC to be between $1 million and $10 million. According to the filing, “The Debtor owns interests in the following entities: (i) JJ NY Schwenks LLC; (ii) JJ NY 550 LLC; (iii) 225 HPR LLC; (iv) 1640 Montauk LLC; (v) 1640 Motors LLC d/b/a Rever Motors; and (vi) 146 E 89 Borrower 1 LLC [which owns 146 East 89th Street in Carnegie Hill].”

Simpson and Chassen have been embroiled in a voluminous and acrimonious state court case which Simpson brought in August 2023, 158055/2023, in which each side blames the other and seeks to take control of the company. Currently, both Simpson and Chassen are members of JJ Arch LLC, court records show, and Chassen filed a letter to the court seeking criminal sanctions against Simpson for stating in the bankruptcy that Simpson was the sole member of JJ Arch LLC.

“Chassen wishes to bring a criminal contempt proceeding against Simpson for his repeated willful violations of the Court’s orders, which has also included selling JJ Arch assets without obtaining Chassen’s consent, and refusing to ensure that Chassen has viewing access to bank accounts or providing books and records as required by the court’s orders,” the March 10 letter says.

As of publication, Jeffrey Simpson, Jared Chassen along with Arch Companies top equity investor, the Wiener family’s 35 Oak Holdings, remain owners, according to a PincusCo review of the state court case.

The surrounding

Within a 400-foot radius of 146 East 89 Street, PincusCo identified eight commercial real estate items of interests occurred over the past 24 months. Of those eight items, two were sales above $5 million totaling $36.4 million. The most recent of the two was P’S Place LLC which bought one condo unit in the 5,508-square-foot, 48-unit mixed-use building (RM) on 180 East 88th Street for $24.7 million from 180 East 88th Street Realty LLC on July 14, 2023. Of those eight items, six were loans above $5 million totaling $669.3 million. The most recent of the six was BLDG Management in which borrowed $5.9 million from M&T Bank secured by the 9,870-square-foot, 20-unit rental (C5) on 117 East 89th Street and one other property on June 8, 2023.

Direct link to the property’s ACRIS page and link to DOB NOW portal.