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Tam Restaurants Inc., reeling from the unexpected loss of its contract to run the restaurant and boating concession in Central Park, is struggling to keep above water.
The owner of Lundy Bros., the legendary Brooklyn seafood spot, will have to come up with a bailout plan within the next few weeks. The company was counting on an estimated $8 million in cash from the park business to fuel current operations and pay down debt.
The contract ends Sept. 30. Without those revenues, the debtladen company must decide whether to seek Chapter 11 bankruptcy protection, or to raise cash by selling off some or all of its operations.
For the first nine months of its current fiscal year, ended June 28, Tam lost $1.9 million on sales of $13.9 million, compared with a loss of $617,000 on sales of $12.8 million for the year-earlier period.
The Staten Island-based company, which went...