Marathon Grill Declares Bankruptcy

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The Marathon Grill restaurant located at 1818 Market Street in Philadelphia filed bankruptcy this week in federal court, posting outstanding debts close to a half million dollars. (See update below for new numbers).

The bankruptcy case does not currently affect the two other Marathon restaurants at 19th and Spruce and 16th and Sansom streets, because while those restaurants are operated by the same family, they are technically owned and operated by different business entities.


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The partnership that owns 1818 Market has filed for Chapter 11 bankruptcy protection, which is the "good type" of bankruptcy, in that it is intended to give a business the chance to reorganize and continue on, while Chapter 7 bankruptcy is meant to liquidate a business to pay off as many outstanding debts as possible. (Of course, Union Trust also originally filed for Chapter 11.)

According to court documents, the company filed for bankruptcy protection immediately after learning that its landlord at 1818 Market Street intended to take possession of the restaurant space due to an ongoing dispute over back rent and fees.

Marathon Grill began in 1984 as a 10-seat burger restaurant in Northeast Philadelphia. The company has experienced some shakeups in recent years, including a partnership dispute, an investigation over ticket fixing at the Parking Authority, and a run-in with the Department of Labor.

Some of the company's outstanding debts, as filed in bankruptcy court:

Singer Equipment$301,308.41
Performance Food Group$114,341.90
City of Philadelphia, Tax Unit$18,751.80
Killian's Harvest Green$10,324.11
A. Esposito$9,984.87
Allied Waste$9,222,18
Sandy Ridge Farm$5,407.50
LeBus Bakery$5,045.11
Chestnut Hill Coffee$2,552,99
Banner Smoked Fish$2,076.00
PGW$1,309.08
Waste Management$1,264.90
Manhattan Bagel$1,174.24
Cypress Communication$1,122.68
Multiflow Industries$928.50
Arway Linen$835.90
Ed's Pest & Wildlife Control$475.20
Faraco Knife & Slicer$439.05
Comcast$349.88
M.A.R. Enterprises$138.50

UPDATE: Lo and behold, there is a second bankruptcy case, not in the name of the family partnership but in the name of 1818 Market Street Marathon Grill, Inc., the corporation. Legal stuff. That case lists mostly the same creditors but also lists the landlord at 1818 Market Street. Marathon says the debt to the landlord is approximately $540,000 (noting that the amount is disputed), which brings the total amount of listed debt in question to over $1 million.

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  • SVO

    That restaurant is consistently PACKED for lunch and during the summer happy hours. No way it should be in the red. Management issue.

  • Sonja

    Guess if they owe Performance Food Group $114 M they have issues. That number caught my attention. Yikes. Great place to eat, hope they reorganize and continue.

    • vfiorillo

      Thanks. Shoulda been a decimal point, not a comma. Sorry for the typo.

  • SpongeBob

    It’s interesting that the landlord is not listed in the outstanding debts. Also, pretty sure that Performance Food Group number is a typo.

    • vfiorillo

      Thanks, SpongeBob. Turns out there’s a second bankruptcy case, as noted in the update, which includes the back rent. And yes, shoulda been a decimal point, not a comma in the Performance Group number. Sorry for the typo.

  • Cary B

    lol @ “great place to eat” the food there is disgusting and the family that owns it are literally the worst people in Philadelphia. their business model is to screw over anyone who they do business with. call any plumber, electrician, vendor, etc. in Philly and ask them if they will do work for the Marathon Grill. HA!!

    • The real Meridian

      Doubt this is the real Cary B, but that would be hilarious if it was. As I said before, “Couldn’t happen to a nicer family.” (Sarcasm detectors exploding)

  • Alimentarian

    $349 to Comcast? Did they only miss a month? And maybe this is a good place for Matt Levin’s second Square Peg franchise.

  • former215

    as a former employee im happy to see these guys go under – they were legendary for their horrible management and mistreating (not paying) employees

  • thetruth215

    Only a matter of time. Their 3 other locations closed over the last couple of years due to non payment, etc. The food is decent, the service is decent, the family that owns that place should go in a hole and never come out. I wont say who the family is, but anyone with a brain can google it. It amazes me that it took this long. Now take these numbers in the report and multiply by 3. The other restaurants arent paying their bills either. They pay just enough to get buy and barely.

    I date any health inspector to go in there and do a real inspection instead of getting paid off. Because they do that too!

  • Yeah

    The owners are fucking assholes I hope the whole place goes under

    • xgriller3

      agreed ^^

    • vampyre927

      Totally agree, if the one son wasn’t snorting the money through his nose,they would still be in trouble.. He uses the company money as his personal bank account and his mother knows it. The Borishes never pay their bills, she is Neil steins sister.The apple doesn’t fall far from the tree.

  • xgriller3

    Karma is a bitch, bring on that Chapter 7….these people need their bubble fully burst. They duck and dodge every organization/business they “hire” out. I knew they owed, but damn, when you see it in black and white its very shocking. This article is great, good work Mr. V.F. Business Schools in Philadelphia should teach their students how NOT to run a business based on the story of Marathon Grill.

  • FMarathon Grill

    Finally! Marathon Grill is a disgrace in all areas. If people knew what they were getting {health department c’mon}, and they way they owner’s treated vendors and employees they’d never go back. Hope you enjoy that lunch salad folks! Ask them how old the product is, and how the area where it’s made is sanitized! Bon Apettite!

  • mcfx18

    i wish is to see this family in hell with vicky they was all born cheap and i don,t think so with all the houses they owne but i hope see soon sheron begging in the sreet for using we mexican and african as slaves just because we are undocument

    mc

  • bul20

    the worst wait for this family and vicky for being horrible to all employees including even customers just check the restaurant very dirty about the food ? a dishwasher in 2 months can became cook haha