Britney Spears News

Britney Spears Restaurant Owes $400,000

Yahoo! Music, Apr 9, 2003 5:00 pm PDT
(4/9/03, 5 p.m. ET) -- The New York City restaurant launched last year by Britney Spears owes $400,000 in unpaid bills. The website "The Smoking Gun" (smokinggun.com) reports that an April 2 bankruptcy filing states that Nyla restaurant, now closed, is in debt to more than two dozen creditors.

Amounts unpaid range from $864 owed to a beverage wholesaler to $101,000 still owed to a subsidiary of General Motors that constructed a staircase inside the building. Other debts include $72,000 owed to the property landlord, more than $50,000 to Con Edison of New York City for power, and more than $4,500 in sales taxes. Money is also owed to an electrician, a restaurant supply company, and other creditors.

The 21-year-old pop star's Pinky Enterprises owned the venture, until her representatives worked to distance her from the failing business. Spears is still listed as one of four partners in the licensing records at the New York State Liquor Authority.

Since it opened in June of 2002, the restaurant has been plagued by problems, accused by critics and patrons of having bad food, inept service, and other troubles, and finally closed after only seven months of operation. Last October, three Nyla creditors filed an involuntary bankruptcy petition against the company, claiming unpaid bills of more than $25,000.

The bankruptcy papers were filed by the firm's managing partner, in conjunction with bankruptcy court proceedings.

For more news at LAUNCH, click here.

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