The Truth Behind The Court Street Bagels Saga
Court Street Bagels, located at 181 Court Street in Brooklyn, has been at the center of a controversy since this weekend.
In the heart of Brooklyn's Cobble Hill, Court Street Bagels has long been a fixture for locals craving traditional New York bagels. But recent events have thrust this beloved eatery into the spotlight of a complex real estate and business dispute, revealing the intricate and often challenging dynamics of small business operations in New York City.
Since 2004, Peter Eulo has been at the helm of Court Street Bagels, building more than just a business, but a community landmark. However, this neighborhood institution seemed to face an abrupt end when Eulo announced on Saturday, January 27 that the shop would close the following day due to the expiration of his lease.
Shortly after Eulo's announcement, a conflicting narrative emerged. Craig Richardson, incorrectly claiming ownership and apparently without any real affiliation to the shop, attributed the closure to vandalism and insurance issues, and even hinted at a potential relocation to Hoboken.
Eulo swiftly countered these claims, stating on social media that the closure was solely due to the lease expiration and expressing his intention to take a break before starting a new venture.
Yet, in a surprising twist, Court Street Bagels remained open on Monday morning, contradicting Eulo's earlier statements. "My lease expired. Last night was the last night Court street bagels was open. I have [sic] the landlord the keys and came home. As for the events of today, I have no idea," Eulo remarked, caught off guard by the turn of events.
This unexpected development followed a Reddit post by someone alleging to be a "family member of the business," who claimed that the bagel shop would not be closing.
Eulo, however, reiterated his astonishment and denied relation to the poster. “My lease expired last night. I handed the keys to my landlord and left with my property. When I woke up this morning, I was in shock to hear that court street bagels was open. I assure it’s not someone I’m related to,” he said on X.com.
This moment of bewilderment for Eulo and the Cobble Hill community represents just one bizarre twist in a saga riddled with complexities and unanswered questions.
So - what actually happened?
At the heart of the Court Street Bagels controversy lies a tangled web of real estate transactions and lease disputes. The pivotal event in this drama was the sale of the property at 181 Court Street in July 2020 to Conway Capital, led by President Abe Cohen, precipitating a series of developments that ultimately led to Eulo’s departure.
Sources familiar with the situation, and confirmed by Eulo, highlight several factors contributing to this transition. Eulo fell behind on rent payments starting in 2021. This was compounded by a significant alleged rent increase imposed by the new landlord.
Simultaneously, the landlord reportedly engaged in negotiations with prospective tenants for the space. Mr. Adam Alsoora, a partner at Smith Street Bagels, a major competitor in the neighborhood, ended up signing a lease in May 2023. The lease was to go into effect once Eulo vacated the space.
Eulo and the landlord worked out a deal. In exchange for leaving, the landlord would forgive Eulo’s debt from unpaid rent. Once Eulo handed in his keys on Sunday, the space was turned over to the new operator.
Given the new management wanted to keep the space as a bagel shop, employees were instructed to continue Court Street Bagels as usual. This caught Mr. Eulo and the community off guard. Eulo’s surprise, in turn, caught Mr. Alsoora off guard, who had hoped to continue operating the bagel shop with minimal disruptions.
Abe Cohen and Conway Capital couldn’t be reached for comment.
At the end of the day, it appears that Court Street Bagels is here to stay, under new ownership. Cobble Hill’s bagel scene will remain relatively undisturbed for now.