Verboten has reopened and filed for bankruptcy after being seized by authorities for non-payment of taxes.
New York state government took possession of the club on Wednesday night due to outstanding tax payments. A spokesperson for the Department of Taxation and Finance confirmed to THUMP that the club owes $360,378.05 (£253341.34) in sales tax.
Verboten’s owners, Jen Schiffer and John Perez, filed for Chapter 11 bankruptcy on Thursday evening, reports THUMP. The move will allow the club to continue operating while it restructures its finances.
Schiffer claimed that she was in the process of negotiating a payment plan with the state and that the club’s seizure came as a surprise. "All programming going forward is scheduled, and we've confirmed shows well into the future," she said.
Matthew Dear’s appearance at Verboten’s birthday party on Saturday night went ahead as planned after the club’s reopening.