Iconic Union Square Dessert Destination Operator Files for Chapter 11 Bankruptcy

​Max NY Union Square LLC Bankruptcy, the NY-based flagship location of popular chocolate restaurant and retail brand Max Brenner, has entered bankruptcy.

Written By Twinkle Jha
​Max NY Union Square LLC filed a bankruptcy petition on February 10 (Source: Created on Canva)

​Max NY Union Square LLC has formally sought bankruptcy protection. The company operates the flagship Max Brenner chocolate restaurant and retail location in Union Square, NY. Through the Chapter 11 process, the company plans to restructure its finances while keeping the restaurant open.

Max Brenner’s Union Square Flagship Files for Chapter 11

According to the case details available on PACER, Max NY Union Square LLC made a voluntary Chapter 11 filing on February 10. The proceedings are taking place in the U.S. Bankruptcy Court for the Southern District of New York. The filing classifies the Union Square location to be a small business debtor as per 11 U.S.C. § 101(51D).

Attorney Mitchell Segal of the Law Offices of Mitchell S. Segal P.C. is representing the Union Square location in the case.

Company Background​

The Union Square flagship first opened in 2006. The NY-based business is a flagship operator of Max Brenner Chocolate Factory, an Israeli chocolate and retail brand, which runs its operations in 36 locations spread across the U.S., Israel, and Australia.

The brand’s Times Square location is not part of the filing and will continue operating as usual.

Filings Made and Impending Deadlines

​Attorney Mitchell Segal, on behalf of Max NY Union Square LLC, submitted a 33-page petition to the court. Additional details in the Chapter 11 case, as mentioned in the court records, are given here:​

  • Filing Date: February 10, 2026
  • Court and Jurisdiction: U.S. Bankruptcy Court for the Southern District of New York
  • Type of Filing: Active, Voluntary Petition
  • Chapter: 11
  • Case Number: 1:26-bk-10275
  • Estimated Assets: $100,001 to $500,000
  • Estimated Liabilities: $500,001 to $1 million
  • Reason for Filing: Restructure business under court supervision

As of now, Max NY Union Square LLC owes roughly 49 creditors in total. A list of creditors with the 20 largest unsecured claims and who are not insiders was submitted in the court. Filing details indicate that funds will be available for distribution to the unsecured creditors.

Additional filings include a summary of assets and liabilities, a statement of financial affairs, a list of equity holders, attorney compensation disclosures, and a corporate ownership statement. Schedules A/B, D, E/F, G, and H were filed as well.

​Court records show that several required documents are still pending. This includes a statement of operations, balance sheet, cash flow statement, and resolution or other statement authorizing filing as per LR 1074-1. These incomplete filings must be submitted by February 24.​

An initial case conference will take place on February 26, court filings state. A meeting of creditors is scheduled for March 12. The Chapter 11 plan of Max NY Union Square LLC must be submitted no later than June 10.

​The latest bankruptcy filing allows Max NY Union Square LLC to continue operating its Union Square flagship while reorganizing its business under court guidance. The results of the proceedings will be pivotal in determining the future course of the long-running NY location.

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Twinkle Jha is a content writer passionate about crafting engaging and informative pieces for diverse audiences. She holds a degree in Journalism & Mass Communication that helps her create news-based articles related to restaurants, retail, and real estate in the US. With five years of writing experience, Twinkle has a strong base for her research, allowing her to create compelling content. Her keen eye for detail and creative approach make her writing stand out. When not working, she loves to watch movies.
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