From Boom to Bust: The Rise and Fall of Patis Bakery as It Files for Chapter 11 Bankruptcy
A once seemingly thriving kosher French-themed boulangerie, Patis, is now crumbling under the weight of its own rapid expansion, illustrated by its Chapter 11 bankruptcy filing. With multiple locations sprouting across New York and New Jersey, Patis initially captured hearts with its promise of artisanal flair. However, the swift scaling up, combined with a controversial decision to forgo on-site baking, has left the beloved bakery chain lacking the authentic โsoulโ that defines a true boulangerie. Now, this kosher brand that seemed on the fast track to ubiquity faces an uncertain future as it grapples with the consequences of its meteoric rise and subsequent fall.
Slowly Then Suddenly & A Unique Business Model
Sprouting up for the first time in Lyndhurst, New Jersey, circa 2018, Patis quickly began expanding into Brooklyn, first in Crown Heights and then on Avenue M. Additional locations started showing up at a rapid clip, including in various parts of Manhattan with the eventual flagship of sorts a block from Times Square. There was also a location that opened up in one of the kosher food meccas nowadays, Lakewood, NJ.
โWe donโt scream the fact that weโre for the Jewish communityโฆโ
Goldie Fridman โ Patis Rep
The rapid expansion seemed almost surreal, and so did the strategy. For example, while Patis had strict kosher certification, many of its later locations, particularly its Times Squared outpost, seemed aimed at catering to a hybrid crowd. Sure, they wanted to meet the kosher consumer where they were and could provide a unique selling point, but they also wanted to capture the mass market. It seemed like it could potentially work until reality hit.
In addition to the unique expansion strategy, Paris did something blasphemous in the world of genuine boulangeries. Its shops did not have baking on-site, which made its locations seem sterile, if not โfake.โ While people generally enjoyed the items on offer, whether croissants, sandwiches, or soups, the place was missing the heart and soul of being in a bakery where one could smell, hear, and see the magic.
Unclear Ownership Chain & โThe Bennyโs Connectionโ
The founding story of Patis and who exactly was initially involved is still unclear. We know that Chef Moses Wendel of Pardes fame, who previously went through personal challenges, had some role in the founding of Patis. Then, just like that, Wendel was no longer involved. Interestingly, Oleg โBennyโ Azizov, a previous owner of Bennyโs Pizza in Brooklyn (our view is that Bennyโs location on Avenue M is one of the best kosher pizza spots), seemed to have an ownership stake. However, we are unsure if he was the sole owner or a partner.
Theories Abound On The Reason For The Downfall
At this time, it is unclear what led to Patisโ Chapter 11 filing. There were some signs, though, that things were not so rosy. For example, there were highly discounted sales on Patis gift cards about a year ago. There were also canceled locations, such as the one slated for near the Manhattan Bridge, which even Patis signs in the window but suddenly fizzled out and did not open. There was speculation about what led Patis down the primrose path on social media, such as Reddit. One user theorized the opening of several poorly performing Patis locations began to drain the profitable ones.
August 2024 Update: Closure of Times Square Location and Avenue M โLocations โFor Rentโ
The Jewish Telegraph reports that the Patis location near Times Square, with a whopping $62,000 in monthly rent, is no longer open. The location on Avenue M has a โfor rentโ sign but is seemingly still open. While the closure of the location near Times Square with the astronomical rent is not surprising, the one on Avenue M (the Avenue M store rent is reportedly $15,000/month) signals that perhaps many locations will be closing.
What Happens Now
Notably, Chapter 11 is considered a reorganization bankruptcy versus Chapter 7, a liquidation. Therefore, at this stage, there is reason to believe that perhaps Patis (entity name โDebtorโs name 703 Bakery Corp.โ) is here to stay in some form but that they need to get rid of bad debt. That said, there has been โa run on the bankโ once word of the filing hit the web. People who bought the heavily discounted gift cards wanted to ensure they could use them, and the demand was so great that the shelves at certain Patis locations were reported as empty. According to the bankruptcy filing, Patis has 21,000 unredeemed gift cards valued at an estimated $851,000. Further, the filing notes that Patis has assets of $500,001 โ $1 million and liabilities of $1,000,001 โ $10 million. Still, Patis is, as of this writing, open for business and even posting on their Instagram page.
We intend to update this story as it develops.
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