'Sleep No More' producers owe McKittrick Hotel millions in back rent: courts
Share and Follow

The immersive theater show “Sleep No More” concluded its long run at the McKittrick Hotel in Chelsea in January. However, the excitement continues…

Known for its enchanting, noir-style adaptation of Shakespeare’s Macbeth, the show had been a fixture in the city’s theater scene since 2011.

While slated to close in 2024, popular demand kept the production around another year.

And while the curtain has finally fallen, producers Arthur Karpati and Jonathan Hochwald apparently still owe millions to the venue.

A New York judge ruled last week that the pair are liable for approximately $5 million in unpaid rent and legal fees — siding entirely with the show’s landlord, Centaur Properties.

The decision follows more than a year of increasingly bitter legal entanglements between the two parties, culminating in four separate lawsuits and a courtroom showdown.

“This was not an eviction case, because they left about a month ago — voluntarily left, without tendering the rent,” Terrence Oved, attorney and co-founding partner at Oved & Oved LLP, which represented Centaur, told The Post.

“We didn’t ask for an eviction. It wasn’t necessary. They left already. We’re just chasing them for the approximately $5 million that was owed.”

According to court filings, Centaur Properties apparently forgave more than $5 million in rent during the COVID-19 pandemic — in an effort to give the show financial breathing room.

But after the theatrical experience resumed and reportedly became profitable again, Centaur alleges the production once again defaulted in 2023, accruing an additional $4.5 million in rent arrears before closing the show for good.

The legal battle began in February 2024 — when Centaur sued Karpati and Hochwald as personal guarantors of the lease.

In response, the duo countersued Centaur and several of its representatives, claiming they were fraudulently coerced into signing the lease amendment that had previously wiped the slate clean.

The tenant’s complaint alleged a range of wrongdoing — but the court rejected these claims.

“This dispute is not about principle but about principal,” brothers Terrence and Darren Oved said in an earlier statement.

“PDNYC’s [who the show’s producers operate under] complaint is a baseless, misguided and transparent attempt to avoid its obligation to pay over $4 million in past due rent.”

In its ruling, issued Friday, May 16, the court dismissed all counterclaims brought by Karpati and Hochwald and found them jointly liable for the amounts owed under the lease, including attorney’s fees.

“We are grateful for the court’s swift and sound dismissal of the baseless allegations against our clients,” the attorneys said in a statement following the decision.

“Harlan Berger and Centaur have acted with utmost integrity throughout this drama. ‘Sleep No More’ will find neither sleep nor slumber until its substantial financial obligations to our client have been fulfilled.”

According to Oved, the decision to vacate the premises was a strategic one, likely made to limit further damage.

“They started realizing that it was closing in on them more,” he said. “And we told them that the longer they stay there, the longer our damages are gonna be accruing. So they left in a desperate attempt to try to shut their damages.”

The show’s producers have not responded to requests for comment.

Share and Follow
You May Also Like
Peaches recalled nationwide over listeria concerns

Urgent Alert: Nationwide Recall of Peaches Due to Listeria Threat – What You Need to Know

Moonlight Companies has initiated a voluntary recall of thousands of pounds of…
Couple help secure girls on roller coaster after alleged seat belt malfunction at Worlds of Fun in Kansas City, Missouri

Heroic Couple Intervenes in Alleged Roller Coaster Seat Belt Malfunction at Kansas City’s Worlds of Fun

KANSAS CITY, Mo. — What was supposed to be an exhilarating day…
Shock defense of Tucker's interview with Nick Fuentes sparks civil war

Tucker Carlson’s Controversial Interview with Nick Fuentes Ignites Political Firestorm and Internal Discord

A fierce debate over free speech has erupted within the conservative sphere…
Blue state ICE agents dodge bullets, speeding cars as left ramps up tracking campaigns

ICE Agents in Blue States Face Increased Risks Amid Intensified Tracking Initiatives

In the past ten days, Southern California has seen two incidents where…
Fergie 'on edge': Ex-Duchess hunkers down 'surrounded by deliveries'

Fergie Adapts to New Lifestyle: Former Duchess Embraces Home Deliveries

Sarah Ferguson is reportedly considering leaving the UK as she holds herself…
Strip club executives allegedly bribed tax auditor with lap dances and luxury trips to slash tax bills

Tax Auditor Allegedly Enticed with Exotic Dances and Lavish Getaways by Strip Club Executives to Reduce Tax Liabilities

In a scandal that has rocked the entertainment industry, a group of…
Whispers about Oprah's best girl Gayle King are reaching fever pitch

Buzz Builds as Gayle King’s Latest Moves Spark Oprah Connection Speculation

Is someone in need of a cleanup crew? It appears the Tiffany…

Century City Family Grieves Loss of Grandmother in Tragic Hit-and-Run Incident

A memorial of white flowers now stands at the crossroads of Pico…