One of the Middle Keys’ staple eateries will look to stay open while restructuring its debts, as the Florida Keys Steak and Lobster House filed for Chapter 11 bankruptcy earlier this spring.
According to court records first filed in April by restaurant owner Maria Ely and attorney Chad Van Horn in the Florida Southern District Court, the business lists a total of $6.63 million in liabilities, including $2.76 million in claims by unsecured creditors.
Among 28 creditors listed in the court filings, the most significant totals include an $806,583 balance due to U.S. Foods along with $1.761 million to business financing company Uptown Fund LLC and three separate balances of more than $300,000 to alternative lenders. The filing lists an $85,498 total owed to the Florida Department of Revenue as well as an unknown balance to the IRS.
“The Debtor filed this Chapter 11 case to reorganize its financial affairs, preserve asset value and address creditor claims through a court-supervised restructuring process,” a case management summary states.
Unlike a Chapter 7 liquidation, Chapter 11 bankruptcy typically allows a business to continue operating while it works to restructure debts and propose a repayment plan.
The filing lists the restaurant’s building at 3660 Overseas Highway at a $3.23 million appraised value, with a $1.8 million mortgage owed to local real estate developer Bruce Schmitt.
“Steak and Lobster,” as it’s called by most Marathon residents, has remained one of the city’s largest and most consistently popular restaurants year-round since Ely and her late husband John took over the business in 2014, from lunches and happy hour specials to a full sushi menu and more upscale dinner dining. The eatery has earned more than a dozen wins since 2017 in a litany of categories in the Keys Weekly’s annual Best of Marathon people’s choice awards.
As news of the restaurant’s reorganization spread, locals took to social media to express support for the business, its employees and owner, calling the business a “Marathon institution.”
“Well Marathon, let’s do what we do best and help them – go eat there, and often,” one wrote.
“If we go out, we almost always go here,” wrote another. “This is a fabulous restaurant in Marathon.”
While some floated rumors of the restaurant’s closure or sale, case documents outline a preliminary six-month budget proposed for approval by the court that would govern the restaurant’s operation while preparing a plan to compensate creditors.
At press time, the restaurant remained open and operational, though Ely declined to comment on the court proceedings. A hearing in the case is set for Wednesday, July 15 at 11 a.m. before Judge Peter D. Russin.
