A White Plains management firm affiliated with legendary comic book publishing and events entrepreneurs has filed for bankruptcy protection.
Ace Operating LLC petitioned for Chapter 7 liquidation on July 21 in U.S. Bankruptcy Court, White Plains, declaring $0 assets and $7,512,454 in liabilities.
Ace’s principal place of business and the location of its principal assets, according to the bankruptcy petition, is 333 Mamaroneck Ave., Suite 461. That is actually a UPS Store with drop boxes. There are no suites, and Box 461 is just big enough to accommodate standard size letters.
In 2010, the U.S. Supreme Court defined a corporation’s principal place of business as its “nerve center” and the “actual center of direction, control, and coordination.”
Brothers Gareb and Stephen Shamus, the CEO and president, own more than 95% of Ace Operating.
They grew up in Nanuet, Rockland County, according to a Wikipedia profile, where their parents owned The Wizard of Cards and Comics sports card and comic book store.
Gareb, who has described himself as a superhero expert, has published guides for devotees of comics, animation, superheroes, toys and games. Stephen has been described as a celebrity engagement manager.
The brothers developed Comic Con events that attracted artists and writers, as well as well-known actors and celebrities.
Ace Operating was registered with a Manhattan address in 2019, according to a state corporations record.
The IRS describes Chapter 7 liquidation as a process that businesses often use to terminate enterprises. A court-appointed trustee then converts all assets to cash, for distribution to creditors.
From 2023 through July 21, when the petition was filed, Ace had no revenue. It owns nothing: no cash, accounts receivable, investments, collectibles, inventory, office furniture, vehicles, equipment or intellectual property.
Creditors include a New Jersey law firm that claims $162,640 and the U.S. Small Business Administration, $7,349,814, all of which Ace Operating disputes.
In 2019, Ace Operating was registered in New York with a Manhattan address. In 2020, it received $139,028 in Covid-19 relief funds, according to a SBA database, to cover payroll, rent and utilities. The loan and interest, totaling $140,315 were forgiven.
In 2021, Ace Operating was using a West Hollywood, California address when it received two SBA grants totaling $7,190,237, under the Shuttered Venue Operators Grant Program for performing arts businesses affected by Covid-19.
Ace Operating says it has used no other addresses during the three years before filing the Chapter 7 petition that uses the UPS Store dropbox address.
