A restaurant in the heart of downtown State College will be no more.
Rotelli announced Wednesday on Twitter that it would shut down after more than 10 years in business. The closure is set for Sunday.
Bankruptcy documents show an agreement for Rotelli to sell its liquor license to Weis Markets for $276,000 and its furniture, fixtures and equipment to McAllister LLC for $1,000. The liquor license’s status, according to the Pennsylvania Liquor Control Board, is active under Rotelli’s company Boltera Inc., though a note next to the restaurant’s front door said that it no longer sells alcohol.
The business nearly closed for auction in April 2015 after Rotelli had fallen behind on a $918,000 Small Business Administration loan too many times for PNC Bank’s taste.
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At the behest of the bank, William F. Comly and Son and Bryan Sampsel, then a sergeant but now Centre County sheriff, were set to auction off Rotelli’s liquor license and hundreds of pieces of equipment in 2015 at 250 E. Calder Way. A bankruptcy filing for the restaurant came through 15 minutes before the scheduled auction, sending 10 would-be bidders away empty-handed.
Jill Spott, PNC Bank’s attorney, had placed the total liability against Rotelli’s at about $1 million plus interest in May 2009 in what was an initial filing by the bank against Rotelli. Rotelli’s took out the SBA loan Aug. 21, 2006, through the bank.
The sheriff’s sale was not rescheduled, according to documents filed by the Sheriff’s Office of Centre County and the case was closed in November.
Rotelli owners have not responded to requests for comment.
Lori Falce contributed to this story.