Buffalo, New York (WIVB) – The New York attorney general is considering closing the Henry Hotel And why are operators withholding security deposits amounting to hundreds of thousands of dollars?
The hotel announced the news of a halt on February 27th. This week, a dozen couples planning their weddings at the hotel will not have a refund.
Kristin Bartholomew, a law professor at the University of Buffalo, told News 4 that these couples can take legal action.
Professor Bartholomew said: “If the Henry Hotel goes bankrupt, these people will be one of many creditors, and this process can be long and drawn out.”
But even if they succeed, Bartholomew says it could take a long time to reschedule their wedding dates – and even if the attorney general intervenes, it can take a long time.
This is where notable developer Doug Jemal comes in.
Jemal owns Seneca One, Statler Towers, and other high-end properties.
He says he will cover any deposits that have not been returned, which they can use elsewhere, or use them as credit if they stick to the hotel, which Jamal would like to seize.
“If they put a deposit to attend a wedding, they’ll get their money back,” Jamal said. “If they make a deposit and want to hold the wedding at the Henry, they can deposit them back on there.”
The deposits will cost Jamal hundreds of thousands of dollars in his own money, but in the spirit of “The City of Good Neighbors,” Jamal tells us that others are calling him to offer help.
The news 4 has reached the Henry. We have not received any response.