Katz's Never Kloses, But Marc Kashes Out

I remember way back when going to Katz's after a late night partying to get blintzs, reubens, or potato cakes and always lots of coffee. It was one of the few all night restaurants back then and a great place to get some real food at the end of a long night. After I got married, my husband and I would go to Katz's much earlier in the evening, to have the special and people watch out the windows on to 6th street. We got to see a lot of Leslie and some other colorful local Austin characters. My husband enjoyed talking to Marc Katz who was always very friendly and outgoing, not just with us but with everyone. He never met a stranger. Since we moved farther away from downtown a few years ago, we haven't been able to make our weekly trips to Katz's but it still holds a special place in our hearts.

Unfortunately, financial woes have taken their toll on Marc Katz. In order to get some of his bills payed, he's selling his property in downtown Austin, including the building where Katz's Deli is located. But do not fret, he is not quitting the deli business. He's planning on keeping the restaurant open. Only problem is he sold all of his reserved parking spaces so Katz's customers are now on their own to find decent parking. I would say it's worth the effort just to enjoy Katz's great food and unique atmosphere.

Katz to sell property
Austin Business Journal - 3:01 PM CST Monday

Katz's Deli owner Marc Katz is selling three downtown properties for $4.4 million, part of a reorganization that he says was prompted by his company's bankruptcy settlement.

The deal includes Katz's Deli at 618 W. Sixth St. and two other nearby properties. Local restaurateur Daryl Kunik is buying the lots.

Katz says that under the agreement, he will lease back the current space for Katz's Deli and nearby parking for the next 20 years. That will allow him to keep the 27-year-old Austin restaurant in business, he says.

"Katz's never closes," says Katz, reiterating the deli's tagline. "When I say that now, I hope everyone knows that I'm serious."

Katz's filed for Chapter 11 bankruptcy restructuring in 2004 in Austin with as many as 99 creditors, including the IRS, lender Amresco Commercial Finance LLC, Dallas-based law firm Hughes and Luce LLP, and Katz's son, Barry Katz. Marc Katz's bankruptcy reorganization plan was approved in August.

Marc Katz stresses that the deli is performing better than ever, but says the bankruptcy settlement left him needing money to pay debtors.