A bankruptcy judge's decision has closed a popular restaurant in the Cherry Hill Mall, though the eatery's owner insists the shutdown will be temporary.

"This is purely a situation where people just didn't communicate," said Andy Cosenza, who hopes for a comeback for the Bistro at Cherry Hill.

The restaurant's fate is in the hands of U.S. bankruptcy Judge Jerrold Poslusny Jr., who on July 9 ordered conversion of the restaurant's bankruptcy into a Chapter 7, or liquidation, action. This decision closed the Bistro, an iconic presence in the mall's main corridor for 30 years, and put it in the control of a trustee, Andrew Sklar.

A bankruptcy judge's order has closed the Bistro at Cherry Hill, but the owner is hopeful of reviving the iconic eatery at Cherry Hill Mall.

The ruling surprised Cosenza, who said he learned after the fact that the mall's owner had requested the conversion and that Poslusny had approved it.

Cosenza said that his attention was focused on severe health problems, and that his attorney responded to the mall's request.

"Obviously, an answer (to the mall's motion) should have been filed," he said.

Cosenza said he's seeking an arrangement that would allow the Bistro to return with Poslusny's approval.

The Bistro, believed to be the mall's longest-tenanted business, seats approximately 60 patrons. Most of its customers sit along gleaming countertops with their backs to passing shoppers.

The three-generation family-owned business serves Italian and American dishes and employs approximately 24 workers, Cosenza said. The restaurant's handful of tables, with chairs placed atop them, are now positioned as a barrier near the counters.

A video at the Bistro's Facebook page on July 16 didn't show its mall location, but promoted a catering service.

“We love what we do and we won’t stop,” the post said.

The Bistro on May 1 had filed for Chapter 11 bankruptcy protection from creditors, pursuing a court-approved plan to restructure finances and reduce indebtedness.

Poslusny's order followed a motion on behalf of the mall’s owner, Philadelphia-based PREIT.

The motion asked the judge to order the payment of $65,000 in “rent and related lease obligations” incurred since its bankruptcy filing. It also noted that the restaurant had owed approximately $304,000 in lease payments prior to its bankruptcy filing.

The motion alternatively asked Poslusny to order the Chapter 7 conversion.

"We obviously were pressing for the conversion really based on the accrued rent, lease obligations and tax problems," said Jeffrey Kurtzman, a Haddonfield attorney who filed the motion for PREIT.

The failure to pay rent during bankruptcy “strongly implies that (the Bistro) is unable to generate sufficient cash flow to formulate and confirm" a plan to reorganize its finances under a Chapter 11 action, PREIT's motion argued.

It noted that Bistro ownership previously filed for Chapter 11 protection over several months in 2017-18.

Shortly before the current bankruptcy, the restaurant and its landlord reached a forbearance agreement, essentially a plan that would buy time for a potential turnaround.

The Bistro agreed to pay $15,000 weekly to the mall, but had made a payment of only $10,000 by May 30, the motion said.

It also noted that the mall’s owner, prior to the May 1 bankruptcy filing, had obtained state court judgments against the Bistro for money damages and for possession of leasehold premises.

Under Poslusny's order, the Bistro is to turn over its records and property to the trustee. It also is to file a final accounting of receipts and distributions within 120 days, or it must explain why the report is not available.

Jim Walsh is a senior reporter for the Courier-Post, Burlington County Times and The Daily Journal. Email: [email protected]..

This article originally appeared on Cherry Hill Courier-Post: The Bistro at Cherry Hill has closed. Why the owner insists it's only temporary.