Bread Stuy Seized By Feds

Bread Stuy, a very clever and catchy name, btw, is an important part of the community. I'm sorry they are having troubles. Getting seized is usually the end result of not resolving tax issues, and I sympathize. I hope they are able to come back. Many first time small businesses have tax problems, and often don't have the reserves to bail themselves out of trouble, running a business is tough and hard work.

I don't think there is anything wrong with a fundraiser. These are hard times, and Bread Stuy has become an integral part of Stuyvesant Heights. It's good for them to be there, and the community has supported them. Neighbors help neighbors. Hopefully they will, and they will survive.

Posted by: Montrose Morris at February 5, 2010 10:29 AM

My sympathy is in that not everyone who goes into business has an MBA from Harvard. Not everyone who starts a business, especially a food business, is aware of all of the pitfalls, regulations, and yes, taxes, that go into running a business, especially in NYC. Yeah, maybe they SHOULD have planned better, had more of a reserve, a better business plan, whatever they did not have. Maybe they should have been nicer people, that's certainly subjective, because they have always been pleasant when I've been in there. Who REALLY knows what the story is, no one here does.

I'm willing to give them the benefit of the doubt, the same as I'd do for any small business in any part of town, because I've been there. If every small business that opened in this town ONLY did so when every single duck was in line, every rule and regulation investigated, every contingency planned for, and every small business was able to have a large stack of cash in the bank to cover every situation, there would be only a handful of new businesses starting up. The owners took a chance, had a great product, and maybe made some mistakes along the way. I still hope they can pull out of it.

People always complain there are no amenities in Bed Stuy. Someone opens one, runs it sucessfully for the last X years, and is now in trouble. They get my sympathy.

Posted by: Montrose Morris at February 5, 2010 11:02 AM

Dave, in an ideal world, adequate capital is a great thing, but for most small business owners, it just isn't possible, unless you are able to get some deep pockets to invest. And for most of us, those people are hard to find, or even impossible to find. Sometimes people have just enough money to secure the space, the equipment and go for it, because the need and customer base is there, and they have a dream. They are not setting out to defraud anyone, or "disgracefully" not pay their taxes. Speaking of which, business owners far richer, and far bigger than one small coffee shop have been in tax trouble, and people don't dump on them the way they have been dumping on this owner. Tax problems can happen to anyone. We don't know what their tax problems are. They may well have been paying for years, thinking they were fine, and got audited, or hit for taxes they didn't know about. Happens to businesses all the time.

Posted by: Montrose Morris at February 5, 2010 11:15 AM

Benson, how about innocent until proven guilty? NOBODY here knows what their tax problems are, and certainly don't know that they are "tax cheats". Assuming a lot, aren't you?

Posted by: Montrose Morris at February 5, 2010 11:17 AM

So what, Benson, fact remains that neither you, or anyone other commenter on this thread, including me, know what the details are, and none of us are qualified to call anyone a "tax cheat". I think boerumresident laid it out the best, there are many reasons why they would owe tax money that have nothing to do with "cheating". And plenty of reasons why a small business would not be able to pay a large retroactive (if that's what it is) tax bill in the time allotted, something else no one here knows. As wasder said, this is a great loss to the community, as there are few alternatives. Bread Stuy had community support, and I hope they will continue to get it.

Posted by: Montrose Morris at February 5, 2010 11:31 AM

Sorry tybur, but you too are making assumptions on facts not in evidence. Everything you said is conjecture and/or a likely scenario. NO ONE KNOWS. That is all I'm saying, in the hopes that people give them the benefit of the doubt, which is all any of us would want in a similar situation.

Posted by: Montrose Morris at February 5, 2010 11:41 AM

Thank you, bfarwell. Well said.

Posted by: Montrose Morris at February 5, 2010 1:12 PM

No one said they don't have to pay taxes, I don't know where that came from. My issue is in the assuption that the reason they were closed, presumably for non-payment of some kind of tax, is immediately thought to be because of some kind of theft or malfeasance on their part, in trying to defraud the gov't, and not because of error, or ignorance, or inability to come up with large sums of money. As a former small store owner, my sympathies are with them, as I know first hand that all contingencies cannot be planned for, and all accountants, financial people, or accounting practices are not first rate. Sometimes you trust people and the worst happens, but again, we don't know what really happened in this case.

I have been finding out that the attorney I had when closing on my house did not tell me a laundry list of things about my house/title/homeownership of a 3 family, that I should have been told at closing. Retained on the suggestion of a friend, this person simply showed up, witnessed papers, collected a check, and left. Years later, as situations arise, I am finding out that certain info should have been explained at, or soon after closing. As a first time homebuyer, I did not know what I was missing out on. Live and learn. For all we know, these people could have been in the same situation, only regarding tax law. I'd like to give them the benefit of the doubt. I would feel that way if they were in Bed Stuy, or anywhere else. Opening a storefront business in this city is a minefield. Not having enough cash reserves makes it a minefield with quicksand.

Posted by: Montrose Morris at February 5, 2010 4:25 PM