A bankruptcy judge denied a request by creditors of Hale & Hearty Soups LLC to appoint an interim trustee to oversee the property of the now-defunct lunch purveyor in New York City, WSJ Pro Bankruptcy reported. Judge James Garrity of the U.S. Bankruptcy Court in Manhattan on Thursday rejected the request from Hale & Hearty’s landlord APF Properties LLC and vendors Baldor Specialty Foods Inc. and Westside Foods Inc., saying that the creditors didn’t provide any evidence to support their allegations against the company that they said would warrant a trustee. “This is an extraordinary remedy, and you have a burden to demonstrate that there is a cause for the requested relief,” Judge Garrity said. “And most respectfully, you haven’t done it, because there is no evidence to support what you contended in your motion.” Judge Garrity said that he would reconsider an appointment of a trustee if the creditors provide sufficient evidence. The company’s owner, Pinchas Shapiro, through his lawyer, said that he would work with any fiduciary appointed by the court to help stakeholders recover “as much value as possible.” The COVID-19 pandemic has emptied out Manhattan’s business districts, and many restaurants, including lunch places, didn’t survive. Before the pandemic, the soup-and-sandwich chain had more than 20 stores, mostly in Manhattan, but all were closed in July, according to a court filing. The company has been placed under chapter 7 since last week when the creditors filed an involuntary bankruptcy petition in an attempt to collect about $816,780 that they said they are owed.
