Old Original Bookbinder's bankruptcy petition was dismissed yesterday, and it appears increasingly likely that the restaurant is done after 116 years.
Creditors, owed about $1.8 million, must find a way outside of U.S. Bankruptcy Court to seek reimbursement from owners John E. Taxin and his aunt Sandy Taxin.
Earlier this week, John Taxin handed over the keys to the Old City landmark at 125 Walnut St., which closed last month as he tried to find someone to save it.
A new tenant is being sought. Equipment and furnishings remain.
In 2006, the restaurant filed for protection under Chapter 11 of the U.S. Bankruptcy Code. At a hearing yesterday, Judge Eric L. Frank agreed with most creditors and the U.S. trustee that converting the case to Chapter 7 - liquidating its assets under court supervision - would not be productive because of the high administrative costs.
Albert A. Ciardi III, Bookbinder's bankruptcy attorney, said that two interested parties had come forward in the last month but that no sale had panned out.
Ciardi said the Bookbinder's name has value and could be sold.
"John and Sandy would like to take care of the creditors," he said.
Bookbinder's - with its bas-reliefs of dead presidents on its stained-glass facade and the Gettysburg Address written in bronze near the front door - seemed to be in shaky health for nearly a decade.
Taxin closed it just after New Year's Day 2002. After a $4.5 million renovation that added condos, a downsized version of Bookie's opened in early 2005. But a bankruptcy filing came less than 16 months later. Among the main creditors are Renaissance Properties, its landlord; Royal Bank; and the Philadelphia Industrial Development Corp.
PIDC, a private, nonprofit organization founded by the city and the Greater Philadelphia Chamber of Commerce to promote economic development, is owed about $650,000 from its $800,000 loan.
Ciardi said that despite operating in bankruptcy, the revived Bookbinder's had done well until April 2008, when fuel prices shot up. "Then business didn't just decline," he said. "It died."
Bookbinder's price point was high, and relied on special-occasion patrons and corporate dining.
"Valentine's Day was SRO," Ciardi said. "The next day, dead."
In March, Peco Energy cut off electrical service for a day until Taxin came up with a cash payment. Ciardi said utility bills were double that of comparably sized spaces, a point he could not explain.
