PATERSON —The real estate company that was going to auction off the Art Factory complex near the Great Falls has postponed the sale.
Bidding in the four-day auction was scheduled to start on Friday. But the Max Spann Real Estate and Auction Company said on its website that the United States Bankruptcy Court has ordered that the bidding be rescheduled, with the new date not yet set.
David Garsia, who has owned the property for more than a decade, filed for bankruptcy in August, after the courts imposed a judgment finding him in default for $10.9 million from a $12.5 million renovation loan, which he took out in 2018 from Bergen County real estate investor Billy Procida.
The Art Factory buildings, once part of a 19th century industrial site, have been used in recent years as artist studios and banquet halls. More than 150 couples who had wedding receptions scheduled for the Art Factory had to find other venues when the business shut down amid Garsia’s financial problems.
This article originally appeared on NorthJersey.com: Paterson Art Factory auction delayed by bankruptcy court