Another COVID casualty: Two Keys Tavern, open for six decades, files for bankruptcy
The company that runs the Two Keys Tavern, which has been operating near the University of Kentucky for 66 years, has filed for bankruptcy due to coronavirus-related shutdowns and revenue losses, the owner said.
Sethco, LLC doing business as Two Keys Tavern, filed for chapter 11 bankruptcy protection in the U.S. District of Eastern Kentucky this week. The bar was never able to reopen after being closed for three months during the pandemic.
Kentucky bars were allowed to reopen with limited capacity on June 29.
“Our hope is that filing for bankruptcy will allow Two Keys to adapt to the new realities and resolve a long-standing dispute with our landlord” said Seth Bennett, of Sethco. Bennett owns bars and restaurants in Kentucky, Ohio, and Florida, including Two Keys Tavern at 333 S. Limestone. The bar has been operating there since 1954.
Two Keys and its landlord Leonard Marshall LLC have been in a two-year legal battle over the building. Bennett alleges that Leonard Marshall LLC reneged on its commitment to honor Sethco’s option to purchase the property in 2018, and the parties have been in court ever since. The landlord wanted all three months of past due rent and Sethco did not have the money to pay back rent given it has been closed since March, Bennett said.
“Two Keys has been operating in this location for over 66 years, and we hope that the bankruptcy filing will give us a shot at identifying a buyer who can continue to serve the Lexington and the UK community for another 66 years,” Bennett said.
Bennett said he is confident that Two Keys Tavern possesses the infrastructure and a loyal following that will allow it to thrive in the post-COVID 19 marketplace, but he said “a good relationship with the landlord is imperative to the success of the location.”
Bennett also owned Pazzo’s, a longtime and popular pizza and beer hangout on South Limestone. That restaurant closed in December 2019.
This story was originally published July 10, 2020 at 10:41 AM.
