Update: Rotelli Files For Bankruptcy At Last Minute To Avoid Closure
Italian restaurant Rotelli was at risk of closure last year when its owner owed $190,000 in back rent. At the time, co-owner David Krauth told Onward State he had an agreement with the bank to stay open.
There were no new developments regarding the financial stability of the popular downtown Italian eatery until recently. The liquor license for 250 E. Calder Way, Rotelli’s downtown location, was listed for live auction last month. According to Comly Auctioneers & Appraisers, the Rotelli liquor license and all restaurant equipment — including walk-in fridges, pizza ovens, deep fryers, and more — will be up for auction this morning at 10 a.m. at Rotelli.
Krauth told Onward State in March there was a dispute about the liquor license with PNC Bank, but the license would ultimately be pulled from auction. The liquor license is currently still scheduled to be sold to the highest bidder on Thursday morning. Krauth said they will likely be in ongoing discussions with the bank until the auction.
“No matter what happens tomorrow, we will be open through graduation without a doubt,” Krauth said. “Liquor license or not.”
It’s not clear what this means for the future of Rotelli. The restaurant equipment is being sold in bulk, not pieced out, so an auction buyer could presumably snag the liquor license and equipment together. Rotelli has been at its 250 E. Calder Way location since 2006, serving up Italian food and drinks, but it seems the end might be near.
UPDATE (11:00 a.m.): The ongoing discussions with the bank worked out in favor of the downtown Italian eatery and the liquor license was pulled from auction. Krauth said they are working to further negotiations with PNC and they have no plans to close.
UPDATE (11:36 a.m.): As it turns out, Rotelli filed for Chapter 11 bankruptcy to avoid closing and selling the liquor license. According to the Centre Daily Times, the restaurant has a spotty financial history, owing the bank $1 million in 2009.
Photo: Rotelli State College