The Art Factory in Paterson, New Jersey, was a popular venue🐻 for weddings and events until it suddenly closed due to bankruptcy.
The unexpected closure left more than 15🧸0 couples without a wedding venue, many of whom had already paid big deposits.
As the financial problems came to light, city officials found ill𓃲egal apartments inside the building, raising serious concerns about how it was managed and the safety of those living there.
Here’s a breakdown of what led to the Art Factory’s closure, how it affected couples, and the money disputes behind it all.
- Officials discovered unapproved apartments at the Art Factory after the venue shut down due to bankruptcy.
- Over 150 couples lost their wedding venue, with many unable to recover their deposits.
- The owner blamed the lender for financial troubles, but a court ruling, unpaid city taxes, and large debts deepened the crisis.
Illegal Apartments Discovered in Art Factory Complex
Shortly after the Art Factory’s closure, city in🌸spectors found that some parts of the complex were being🌳 used as apartments without approval.
The discovery happened in an old industrial building on Spruce Street, where a family of ten was f🥂ound living.
City officials said these apartments were prohibited and never approved for♛ r🌞esidential use.
The fami🌠ly stayed for over a year, and the city’s health department temporarily moved ♈them to a hotel.
City officials, like Councilma🍒n Luis Velez, criticized the situation, saying it was dangerous to allow families to 🐠live in places not set up for housing.
This discovery came after years of the city trying to address issues with the Art Factory’s oper🎶ations.
There were warnings and efforts to enfo🌱rce rules for over seven years, but the problems remained until the venue final💦ly shut down due to financial troubles.
Bankruptcy Leaves Couples Without Wedding Venues
The Art Factory’s bankruptcy filing left many couples in a difficult spot.
The venue’s sudden closure meant more than 150 couple𒊎s had to find new places for their weddings at the last minute.
Many, like Ivanna Ramirez and Raymond Romero, had paid large deposits, such as $12,000 for their Oct🥀ober 4th weddin꧙g.
Unfortunately, the couple learned about the closure through a news article, not d✱irectly from the owners.
And as you can expect, thi🎐s left them scrambling to find another venue while recovering their๊ money.
The venue’s owner, David Garsia, toꦐld couples to file claims with the bankruptcy court to get their deposits bac🃏k.
But this process didn’t provide immediate help, so it left many brides and grooms frustratꦉed and uncertain.
Some couples shared their concerns ༺on social media, saying that Art Factory staff stoꦇpped responding to their questions and messages as their wedding dates approached.
The chaos continued during a wedding last Friday when many staff members did not show up to run essential parts of🐻 the venue.
As a♔ result, guests wer🍸e left without elevator access or transportation from parking areas.
Thus, event planners had to step in and pay out of their own pockets to keep the event running smoothly thওat weekend.
Financial Issues and Blame Between Owner and Lender
The financial struggles at the Art Factory didn’t just end with bankrupt꧃cy.
Owner David Garsia pointed fingers at his main lender, Bergen County investor Bill Procida, claiming that the lender caused many of the fina♎ncial problems.
ܫGarsia accused Procida of draining the business’s resources and raising its debt, especially during the COVID-19 shutdowns when events couldn’t be held.
He also claimed that Procida never provided the full $12.5 million loan they had agreed on, saying that $4 million was withheld. And this contributed to a recent court ruling that put Garsia on the hook for ꦓ$10.8 million.
Procida, however, denied thes﷽e claims and argued that Garsia never mentioned the missing funds in court.
He said that the bankruptcy judge now controls the future of the Art Faꦓctory, not him.
Procida sympathized with the couples affected by the ven🌊ue’s closure but criticized Garsia for handling the situation poorly.
In addition to the ಌba🔯nkruptcy issues, the Art Factory also owes the City of Paterson nearly $250,000 in unpaid property taxes and sewer fees.
These unpaid debts add to the venue’s long financial and management problems.
Event planners and industry insiders had already started avoiding the Art Factory in recent years. This wa🦹s due to frequent com🧔plaints and a history of poor management.
What’s Next for the Art Factory and Those Affected?
The future o🌸f the Art Factory is unclear as its financi🦄al and legal problems continue.
The venue, which once hosted weddings, artist studios, ไand events, is now controlled by a bankruptcy judge.
Many couples have al🌜ready booked new venues to avಞoid further uncertainty, even though this means they might lose the money they paid in deposits.
With over $10 million in debts, unꦺpaid city fees, and a damaged reputation, it’s unclear what will happen next for the venue.
It’s surprising how a place that was once so popular could close down so quickly.
