The Rise, Fall, and Rebirth of Court Street Bagels

In a follow-up to our earlier coverage of Court Street Bagels (read Part I here), new documents and interviews obtained exclusively by NYC Bagel Tours shed light on the dramatic series of events leading up to and following the closure, and the unexpected continuation, of this Cobble Hill staple.

The saga, revealed through legal documents from the Civil Court of the City of New York, commenced with a March 2023 lawsuit filed against Peter Eulo, the owner of Court Street Bagels, by the building’s landlord, Conway Capital, helmed by President Abe Cohen. The tenant ledger, part of the court records, illustrates Eulo's increasing financial struggles, with his $12,000 per month rent payments lagging from March 2022. Despite attempts to catch up starting in April 2023, Eulo’s overdue balance had already ballooned to over $160,000. This daunting sum was further exacerbated by rent hikes to $15,500 in July 2023, followed by another increase to $22,500 in December 2023.

A July 2023 settlement, ratified on January 26, 2024, dictated that Eulo owed $163,094.78 in arrears as of January 31, 2024. Under the settlement terms, Eulo's debt would be forgiven if he vacated by January 28 at 6 pm, leaving all the equipment behind.

This raises the question: why would Conway Capital waive such a substantial debt?

The answer lies in the involvement of Adam Alsoora, the owner of Smith Street Bagels, a competing neighborhood bagel shop. Records indicate Alsoora signed a lease for the space in May 2023, effective upon Eulo’s departure. After the court settlement's ratification, Alsoora paid $85,000 to Conway Capital to acquire Court Street Bagels. Alsoora was reportedly under the impression, as advised by Cohen, that his payment would be directed to Eulo as compensation for the business.

However, in a strategic move, Cohen retained the $85,000 payment, turning the business over to Alsoora while offsetting a portion of Eulo's debt and securing a rent-paying tenant without the cost of refurbishing the space.

Employees of Court Street Bagels, including “Gigi,” the manager of 18 years, along with colleagues Angelica and Hector, confirmed this sequence of events. Unaware of the prolonged court case, they were first informed by Peter Eulo on Friday, January 26 — the same day the court settlement was ratified — that Sunday, January 28, would mark the shop's final day of operation.

On the afternoon of Sunday, January 28, Eulo said his goodbyes, removed the cash register, and left the remaining equipment, consistent with the settlement terms. That evening, “Gigi,” braced for unemployment, received a call from Alsoora, who inquired if he and the other employees wished to retain their jobs under the new management. They unanimously agreed, leading to the shop's uninterrupted operation on Monday, January 29, to the surprise of Eulo and community at large. Celestino García, Court Street Bagel’s former bagel roller profiled by the New York Times, was not among them, as he’d stopped working at Court Street Bagels at least 6 months ago, according to multiple employees.

Though beloved by his customers, it appears Peter Eulo’s cessation of rent payments played a central role in the events that captivated and confused the community last week. The subsequent acquisition by Alsoora seems to have created a positive outcome for all involved: Eulo was freed from significant financial burdens, Conway Capital mitigated their losses, Alsoora acquired a turn-key business, and the employees maintained their livelihoods. The community, in turn, retained a neighborhood bagel shop.

Alsoora believes that, had he not stepped in, the future of the space might have been quite different. Observing recent trends on Court Street, he speculates that a new tenant would have been unrelated to the bagel or local business scene altogether.

Looking ahead, Alsoora envisions a progressive shift for Court Street Bagels. Unlike Eulo's cash-only model, he plans to integrate digital payments and third-party delivery services. He also intends to “improve ingredient quality, reduce prices on select items, and raise employee wages.”

While Alsoora readily acknowledges that Peter Eulo’s personal touch and exemplary customer service are irreplaceable, he is optimistic that these changes will not only preserve but also enrich the shop's legacy. His hope is that Court Street Bagels will continue to be a cherished institution in Cobble Hill, evolving with the times while retaining its essential character.