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Shop's bankruptcy costs Hagerstown $33,249

February 17, 2000|By DAN KULIN /Staff Writer

The City of Hagerstown will not receive about $33,000 owed by the owner of Round the Square, a downtown coffee and sandwich shop that closed in December, said Mark Boyer, a city attorney.

Last month Crescent Moon Ltd., which owned Round the Square, filed for voluntary Chapter 7 bankruptcy in U.S. Bankruptcy Court for the District of Maryland in Greenbelt, Md.

Tuesday, Boyer said the company had no assets, which would have been used to pay off debtors.

Crescent Moon, which was owned by Harry Grandinett, owed the city $33,249, including $23,394 for a construction loan and $9,854 in unpaid rent, according to city records.

When the company filed for bankruptcy, Steven Kessell, a Hagerstown attorney who was representing Grandinett, said the company probably would not be able to pay most of its debts.

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For more than five years, Round the Square was at 12 Public Square in the city-owned Elizabeth Hager Center building. But the rent hadn't been paid in full since August 1998, according to City Finance Department records.

Some City Council members have said they didn't evict the business because they were trying to give Grandinett every chance to succeed.

Grandinett also operated the former Harry's House of Blues, which was later renamed Harry's House of Brues after the national House of Blues chain threatened legal action. The House of Brues shared a kitchen with Round the Square until the blues bar closed in July.

The Mayor and City Council were scheduled to discuss the matter in closed session, but at Councilman Lewis Metzner's suggestion the matter was discussed at the open meeting.

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