Report: Chelsea Wine Storage Facility Files For Bankruptcy After Post-Sandy Lawsuits

NEW YORK (CBSNewYork) -- A Chelsea facility that kept millions of dollars' worth of wine has filed for bankruptcy in the wake of damage by Superstorm Sandy and subsequent lawsuits, according to published reports.

WineCare Storage, at 628 W. 28th St., filed for bankruptcy in U.S. District Court on Jan. 29, listing over $1 million in liabilities and just $237,000 in assets, according to a New York Post report.

The filing followed a series of lawsuits by clients who had kept expensive wine collections at the warehouse when it was flooded during Superstorm Sandy, according to published reports.

Real estate investor Philip "Tod" Waterman III filed suit after claiming the company refused to give him access to his $300,000 wine collection, the newspaper reported.

Another client, Manhattan restaurant owner Keith McNally, filed suit after WineCare allegedly did not return his $2 million wine inventory when he demanded that the facility do so, the newspaper reported.

Quoted by the newspaper, WineCare president Derek Limbocker blamed the bankruptcy on the "interruptive" and expensive lawsuits, and said the company planned to reorganize.

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