Business Context and Reporting Period
This Form 8-K Current Report is filed by Ark Restaurants Corp. (ARKR) on June 26, 2026. The filing addresses a significant legal dispute regarding the Company's operations at three locations within Bryant Park, New York: the Bryant Park Grill, the Bryant Park Café, and The Porch at Bryant Park. The leases for these locations expired in March and April 2025, triggering a Request for Proposals (RFP) process and subsequent litigation with the Bryant Park Corporation (the "Landlord").
Key Financial Metrics
This filing is a Current Report regarding legal proceedings and does not contain financial statements. Consequently, specific values for revenue, profit, cash flow, margins, debt, or liquidity are not provided in this document.
Material Changes and Legal Developments
The filing details a summary judgment decision issued by the New York State Supreme Court on June 18, 2026, regarding the ongoing dispute:
- Company Victory: The Court granted summary judgment in favor of Ark Restaurants regarding the breach of contract for the Bryant Park Grill lease and the Company's right of first lease for the Bryant Park Café. The Company is entitled to money damages to be determined in a future trial.
- Landlord Victory: The Court granted summary judgment to the Landlord regarding claims for ejectment, use and occupancy, and breach of contract concerning the Bryant Park Café lease and The Porch at Bryant Park license. The Landlord may seek damages for use and occupancy in a future trial.
- Dismissals: The Court dismissed the remainder of the Company's claims, including the age discrimination cause of action added in June 2025.
- Specific Performance: The Court did not grant the Company specific performance (i.e., forcing the Landlord to renew the lease) nor did it preclude the Landlord's claim for ejectment.
Outlook, Risks, and Management Commentary
Management intends to file a Notice of Appeal regarding the adverse portions of the June 18, 2026 decision. The filing of this appeal will result in an automatic stay of eviction pending the determination of the appeal. However, the Company will be required to file an undertaking (a financial bond) for the duration of the appeal, the amount of which will be determined by the Court.
The Company states that the uncertainty related to this dispute has had, and is expected to continue to have, a material adverse impact on its business, financial condition, and results of operations. Key risks include:
- The timing and outcome of the appeal.
- The availability and duration of the stay of eviction.
- The amount and terms of the required undertaking or court-ordered payments.
- The possibility of additional adverse rulings.
- The ability to remain in possession of the premises and continue operations.
- The ability to extend or renew leases on favorable terms.
Investor Verification Checklist
- Verify the specific amount of the "undertaking" (bond) required by the Court to maintain the stay of eviction during the appeal.
- Monitor the timeline for the filing of the Notice of Appeal and the scheduling of the damages trial.
- Assess the operational status of the three Bryant Park locations to confirm if they remain open pending the appeal.
- Review future filings for updates on the "use and occupancy" payments the Court previously ordered the Company to make.
- Evaluate the potential financial impact of losing the Bryant Park locations on the Company's overall revenue stream.