In a courtroom moment fit for the pages of a novel, a New York bankruptcy judge didn’t just confirm the Chapter 11 restructuring of the Margaritaville resort in Times Square—he set the mood with Jimmy Buffett’s iconic anthem.
U.S. Bankruptcy Judge Philip Bentley, overseeing the case of 560 Seventh Avenue Owner Primary LLC, gave the green light for the debtor to convert its sublicensing agreement into a full-fledged franchise deal with Margaritaville Hotels and Resorts LLC. Then, in a move that underscored the cultural weight of the decision, he hit play on “Margaritaville.”
“I think the moment calls for 60 seconds of musical celebration,” Bentley quipped, as Buffett’s legendary tune drifted through the courtroom. “This is a day that preserves the right of New Yorkers to enjoy a margarita under a fake palm tree in Times Square.”
From Sublicense to Franchise: A Lifeline for the Resort
Under the approved plan, the debtor will jettison its current sublicensing agreement in favor of a franchise model—one that brings deeper brand integration, enhanced technological support, and expanded rights to hold Margaritaville accountable in case of default.
