Karma, Bamboo Bar Owner Seeks Bankruptcy Protection

SEASIDE HEIGHTS, NJ — The owner of the Bamboo Bar and Karma has filed for Chapter 11 bankruptcy protection, claiming liabilities of nearly $2.4 million, according to court documents.

The Saddy Family LLC, which owns the two night spots popularized in part by the MTV show "Jersey Shore," filed the Chapter 11 request on Feb. 28. Among its debts is $123,150 in property taxes and municipal utilities owed to the borough.

Also listed as debts are a $371,266 economic development loan from the state, loans of $840,114 and $786,778 from Shore Community Bank, a $160,000 loan from Robert Bennett Jr. of Lavallette and $109,544 in a contract dispute with DeRosa Ventures.

John Saddy, who owns the company with his sister, Linda, told the Asbury Park Press the two clubs will open for the 2019 summer season. The Facebook page for Bamboo Bar says it will be open Saturday for the St. Patrick's Day parade.

The relationship between the borough and Bamboo Bar, at 201 Boulevard, and Karma, at 401 Boulevard, has been rocky for some time.

Both have had reputations for rowdiness. Bamboo Bar was the scene of a fight involving the Jersey Shore cast in 2012, as well as other incidents before and after. But it was what police described as a melee at Karma over Memorial Day weekend in 2018 that prompted Seaside Heights to try to have Karma's liquor license suspended. Four people were charged with underage drinking and there were six overdose calls on Saturday night of the holiday weekend.

Borough Administrator Christopher Vaz told Patch at the time that Karma was supposed to be operating as a restaurant, not solely as a nightclub, a violation of its site plan approval, and that in addition to the underage drinking was why the borough was seeking to suspend the liquor license.

In November, Saddy filed a federal lawsuit against Seaside Heights, alleging the borough was engaging in discrimination against African-Americans by demanding Karma not play hip-hop and rap music. Saddy's suit also claims the borough discriminated against the LGBTQ community: "Defendants also forbade Plaintiff from holding events geared toward the LGBTQ community," the lawsuit says.

The lawsuit also alleges extensive harassment of Saddy and both clubs going back nearly 20 years, and says the most recent issues have significantly damaged his business at Karm.

Seaside Heights has denied Saddy's claims, both in court documents and publicly. Borough Attorney Jean Cipriani told the Asbury Park Press that Saddy's suit was simply retaliation over the borough's actions against Karma.

Seaside Heights officials have been trying to transform the borough into a more family-friendly resort over the last several years, trying to put the rowdy image projected by the "Jersey Shore" series to rest.

The borough passed an ordinance in September that instituted restrictions on rentals to minors after several incidents during the spring prom season in 2018, and has cultivated events aimed at bringing families into the borough.

Borough officials also have refused permission for some production companies to film so-called reality shows in Seaside Heights as part of those efforts. The producers of "Jersey Shore" were refused when they sought to film the "Jersey Shore Family Vacation" series in 2018. Bamboo Bar also ran afoul of this in 2017, when it announced it was holding a casting call for a show that would have featured housemates who also worked at the bar, according to a Jersey Shore Online report.

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