Owner of Seigo's Steakhouse Files for Bankruptcy

Sitting on the desk of Sussex Clerk-Treasurer Sue Freiheit is an official notice from a federal bankruptcy court in New Mexico.

It informs Sussex that Nels Anderson Sr., owner of the struggling at N64w23180 Main St., has filed for Chapter 11 bankruptcy protection.

However, both Freiheit and Village Administrator Jeremy Smith say the village has received no notice from Anderson that the restaurant has been formally closed.

When Patch called the restaurant Tuesday night, a recording said the number was temporarily disconnected.

Anderson owns two other businesses in Sussex - storage facilities - which the village understands will continue to operate, but will be reorganized to help shoulder some of the restaurant's financial problems.

The village is owed some $40,000 in unpaid real estate taxes, personal personal taxes and utility bills.

Smith explained that "if the property is sold," for instance, to another restaurant operator, "the utility bills and property taxes would be settled upon the transfer of the property."

"Sometimes though," Smith said, "the personal property taxes on equipment and furnishings can be a problem to collect."

The restaurant building had been offered to the village twice by Anderson as a new location for Village Hall, first for $2 million, then in a second offer for $1.5 million.

The chair of the Community Development Authority, village Trustee Pat Tetzlaff, who also chairs a special committee studying options for the future of Village Hall said Tuesday that "it would be unfair to the taxpayers if we were to pre-choose the Seigo's site because of this bankruptcy without looking thoroughly at all the options, as we have promised."

But some may see a new restaurant operating in the Seigo's location as a very positive development. "It's the number one request we get from residents," said Smith. "People want more restaurants in town."

And Tetzlaff echoed that by saying, "though it's certainly a sad situation, this is clearly a sale and there's nothing like a sale."

"A restaurant run by a lifelong restauranteur would great for the village," Tetzlaff added.

Nels Anderson Jr., the son of the owner who owns a plumbing business in North Lake, said he and his wife had dinner at Seigo's "just a couple of weeks ago."

He said although he knew his dad was "losing money, we had no idea at that time that the restaurant was going down."

But the younger Anderson said the recession has been devastating for many small businesses.

"We bought this plumbing business four years ago and haven't had a profitable year yet, and I know he was losing money on the restaurant," his son said. "It was tough for him to do the volume of business needed."

Though one possible reason for the elder Anderson to not give notice of  officially closing might be to protect the business' liquor license, Smith said.

Unlike other communities, a couple of liquor licenses are available in Sussex, he said.

Under different circumstances, though, not having a liquor license "could be a problem for a potential new operator," he said.

Smith doesn't see that as an issue at present, though, because a license can typically only be revoked after six months of ceased operations.