Bankruptcy Judge Approves 1663 Purchase Of Sickles Market, Rumson Home

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Bankruptcy Judge Approves 1663 Purchase Of Sickles Market, Rumson Home In a breaking update to the Sickles Market bankruptcy saga, a federal bankruptcy judge on Tuesday approved the Sickles land sale to proceed:

LITTLE SILVER, NJ — In a breaking news update to the Sickles Market bankruptcy saga, a federal bankruptcy judge on Tuesday approved the proposed Sickles Market land deal to go through.

Hon. Christine Gravelle issued her decision Tuesday, allowing a proposal from an LLC called 1663 Partners to proceed.

With the judge's approval yesterday, the sale can proceed. It's big news.

How much is 1663 Partners paying for all this?

A total sales price has not yet been worked out, said Dan Stoltz, chair of the bankruptcy department at major New Jersey law firm Genova Burns. Sickles hired Genova Burns to be his bankruptcy lawyers.

"(A sales price) hasn't been defined. I cannot even answer, I don't hold the purse strings," said Stoltz. "A judge yesterday allowed the plan to proceed, and all the parties are now talking to each other and assessing."

Whenever that price is made public, it will quite the sum: The two Little Silver properties combined, including the Sickles Market building, were appraised at $6.25 million, according to court filings. However, the Sickles believe the land is worth far more than that.

Separately, their Rumson home has been appraised at $2.4 million.

This is all according to a memorandum of understanding between Sickles and 1663 Partners, which Patch broke the details of last week .

Are they thinking condos? He said he could not answer.

"The idea is they will keep the market open and build residential around it," he said. "They are currently evaluating what is the highest and best use for that land."

Patch replied that Little Silver residents may not react favorably to new housing construction.

"They are all residents of the area, they know that area," he replied, referring to the 1663 trio. "They all believe having the market re-open enhances the value of the property for residential purposes. I know they have already talked to the town of Little Silver (about building residential)."

Are 1663 Partners personal friends of the Sickles?

No, said Stoltz. He said they simply are a trio of local residents who heard Sickles, a Rumson-area institution, filed for bankruptcy. After finding Sickles' first bankrupcy filing online, they contacted Stoltz, he said, who put them in touch with his client, Bob Sickles, Jr.

What happens next?

Now that a federal judge approved the "1663 Plan" to move forward, it will have to be proposed to everyone who is owed an outstanding debt from Bob Sickles. This includes all the employees who worked for him, the bank and all the meat and vegetable companies who have not been paid for food deliveries, plus other creditors.

For the 1663 plan to go through, a majority of those parties, two thirds, need to approve it, with an understanding that some or all their debts will be paid to them, said Stoltz.

"The former employees of the market and the liquor store will be paid in full for the wages they are owed," said Sickles' lawyer. "They will absolutely be paid in full. This has been made clear from the Sickles that all employees will be paid. There are other creditors that they may attempt to negotiate with. There are some claims that we are likely to dispute, and they will either be paid in full or paid an amount they will accept."

While all this is happening, the Sickles family is also trying to prevent the bank from foreclosing on their private Rumson home before the 1663 deal goes through.

Last week, Northfield Bank filed a motion to start foreclosure proceedings on their Heathcliff home. Genova Burns filed an objection motion Tuesday. Stoltz and his team present the 1663 plan as a way to keep the Sickles in their home.

"We believe they have more than adequate collateral, and we are hopeful and confident the judge will deny their motion," said Stoltz.

"The Sickles family ran this market from 1908 until the COVID crisis hit," said Stoltz. "They supported themselves, their employees and the community. Then there was a black hole of convergent events that led them into this situation: They opened up the Red Bank offshoot, an extraodinary financial strain that happened exactly at the time COVID came and nobody left their houses. Every business suffered. ALl of these factors converged for people who for years had operated successfully and profitably. They fell into a financial black hole they could not get out of."

Last Wednesday's wowzer: New Owner Attempts To Take Over, Reopen Sickles Market (Aug. 21)

Additional details Friday: More Details Revealed About Proposed Sickles Land Deal (Aug. 23)