Oyster Bar still closed, second bankruptcy filed

Oyster Bar still closed, second bankruptcy filed

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The Oyster Bar Grill on Circuit Avenue in Oak Bluffs remains closed, after the corporation that owns the restaurant and bar filed for bankruptcy a second time. There are still questions surrounding the establishment’s annual liquor license.

Town administrator Michael Dutton said the manager, Michael Gillespie, has not paid the license fee, has not presented proof of liquor liability insurance, and therefore does not have a valid alcohol license.

In January, the establishment filed for bankruptcy, preventing a planned foreclosure auction. A federal judge dismissed the case in February, because Mr. Gillespie failed to provide required proof of insurance, according to court documents.

The company filed for bankruptcy again on March 28, just before another scheduled foreclosure auction.

The Edgartown National Bank, which is the Oyster Bar’s largest creditor, immediately asked the judge to dismiss the case, saying Mr. Gillespie still does not have insurance or a liquor license, and no reasonable plan to reorganize the business.