Alarms sounded from SoHo to Southampton yesterday when cityfile.com announced on their website that Pink Elephant and their newly launched Day and Night had filed for bankruptcy.

First of all, lovers of the famed Chelsea location can breathe easy. Seriously, some of you became downright apoplectic! While Southampton Yen Restaurant Group, LLC, operators of the Southampton hotspots Pink Elephant and Day and Night, did in fact file for Chapter 11 bankruptcy protection this week, it will not affect Pink Elephant Chelsea.

As a matter of fact, it's probably not going to affect Pink Elephant, or Day and Night, in Southampton either. Here's the Reader's Digest version of what we know...

Southampton Yen Restaurant Group, LLC, has huge debt still left on the books thanks to the long closed, and long forgotten, Southampton club, Cabana. The group owes the state of New York somewhere in the neighborhood of $750,000.00, though that number is reportedly being disputed. Their goal is to make an offer to the state to pay off Cabana's debts over the course of the next five years. Currently, the state is asking for all outstanding debts to be paid in full. So, it appears as though the bankruptcy filing is more of strategic tool than a sign of real trouble. It basically puts them in a better position to negotiate with the usually non-negotiable state of New York.

We've been told the parties will continue per usual at Day & Night and Pink Elephant and, for now at least, your summer of decadence and debauchery can continue as planned.