Upon the death of Caviarteria Owner Bruce Sobol July 21, trustee of his estate Walter Drobenko said an unpredictable future lies ahead for the three remaining caviar and seafood retail stores here and in Palm Beach and Boca Raton, Fla.

Sobol, who is survived by wife, Lydia, daughter, Lucy and mother, Ruth, died here in July at age of 43 - two years after his brother, Eric Sobol, also died. The two brothers were co-owners of Caviarteria, which they inherited when their father Louis Sobol died in 1992.

Drobenko, who was appointed trustee of the estate together with longtime Caviarteria employee Magdi Mahmoud on Aug. 1, said the retail stores are carrying debt worth "a couple of million (dollars) at a minimum.

"In my opinion, Caviarteria can and will go forward is by restructuring and taking in an equity investor," said Drobenko. He said he is not ruling out the possibility of Chapter 11 reorganization in U.S. Bankruptcy Court.

"As preliminary executors...part of our role is to act in the best interest of the estate," he added.

Louis Sobol founded Caviarteria roughly 50 years ago in the Demonico Hotel on East 59th Street. His retailing vision was to bring a casual, approachable air to caviar retailing to attract a broader customer base, beyond upper-class clientele.

According to David Mills, general manager of the Caviarteria on 59th Street here, and a 14-year employee, under Eric Sobol's direction Caviarteria embarked upon aggressive expansion in 1998.

"From 1998, Eric started making big mistakes...," said Mills. "...Their father was the one who really had the vision. He built the business from scratch."

Under Eric Sobol's leadership, Caviarteria opened stores in some of the most elite locations in the country, including Caesar's Palace in Las Vegas and other stores in Beverly Hills, the SoHo Grand Hotel and Miami Beach. Caviarteria stores, featuring the chain's signature caviar tasting bars, also opened in Grand Central Terminal and Boca Raton during this time.

"The expansion was probably too quick in hopes of going public...it was a case of the initial public offering syndrome," said Drobenko, regarding the debt.

All locations, except for Miami Beach, Boca Raton and the 59th Street location here, were closed by Bruce Sobol after his brother's death, said Drobenko.

"Bruce inherited a lot of liability from his brother," noted Mills.

The two Florida Caviarteria locations have been under new management since May, according to Philip Smith, who is managing partner of the Florida locations with his wife, Carla Ferreira-Smith.

The Smiths are managing the stores, which are partly owned by a silent partner.

"We are operating independently, trying to recover the income they lost over the years by continuing to operate as Caviarteria until further notice," Smith said.

The Boca Raton Caviarteria is a bar and lounge, while the Palm Beach store is expanding beyond smoked seafood and caviar. He said changes include an international wine wall as well as the addition of gourmet oils and pasta.

According to Drobenko, all three Caviarteria locations are separately owned. He declined when asked to name the owners.

"Our main concern is Madison Avenue Caviarteria," he said. At press time he was evaluating the scope of the company's debt. The millions are owed to vendors, suppliers, advertising companies and the phone company. "We took care of the issues that needed immediate attention," he said.

Despite the challenges ahead, Drobenko said he is determined to settle the financial liabilities and save Caviarteria.

"Caviarteria has been around for so many years and has an incredible name recognition," said Drobenko. "To see a legendary name like Caviarteria disappear - nobody wants to see that."

© 2003. United Publications. All rights reserved.

With millions of dollars in debt, Caviarteria's future uncertain