Durham's Watts Grocery restaurant, caterer files for bankruptcy

Chef Amy Tornquist and her husband Jeremy Kerman, owners of Sage & Swift Gourmet Catering, Inc. and Watts Grocery, filed for Chapter 11 bankruptcy protection on Tuesday.

Posted 9:09 p.m. Feb 13, 2019 — Updated 9:19 p.m. Feb 13, 2019

Kathy Hanrahan, Out

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DURHAM, N.C. — The owners of Watts Grocery in Durham have filed for bankruptcy protection.

Chef Amy Tornquist and her husband Jeremy Kerman, owners of Sage & Swift Gourmet Catering, Inc., and Watts Grocery, filed for Chapter 11 bankruptcy protection on Tuesday. Kerman is noted as the 100 percent shareholder and president of the businesses, while Tornquist is listed as treasurer and primary manager.

The couple owns the property at 2505 Whilden Drive in Durham where Sage & Swift Gourmet Catering operates. That property is estimated to be worth $500,000, however, it does have several state and federal tax liens in addition to a $200,000 deed in trust to SunTrust Bank, according to court documents filed with the Eastern District Court of North Carolina.

They do not own the Watts Grocery space at 1116 Broad St. in Durham.

Sage & Swift Catering opened in 1993, while Watts Grocery opened in 2007.

In court fillings, the couple claims its financial problems were linked to the failed venture Hummingbird Bakery, which opened in 2012 and closed in 2016, calling it a "significant drain on financial and personnel resources."

Tornquist's medical issues, which began in 2010 and resulted in major surgery in 2015, were also cited. The death of Tornquist's mother in 2016 also took her away from managerial duties.

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The business' debts include more than $430,000 to the Internal Revenue Service, $57,576 to the North Carolina Department of Revenue and $13,000 in back rent to Eno Ventures in Durham, court documents show.

The business' assets and debts are each estimated between $500,000 and $1 million.

On Wednesday, the business filed a petition requesting the court's permission to pay employees wages for the past two weeks (prior to the bankruptcy filing) totaling $21,000.

The company also plans to eliminate two managerial positions, each with an annual salary of $45,000, and have Tornquist fulfill the duties for a single salary of $45,000.

The catering and restaurant operations are expected to stay open, according to court documents.

Filing for Chapter 11 bankruptcy allows the court to reorganize the debt and negotiate terms instead of having to sell off all assets.