The long-running, immersive theatrical spectacle “Sleep No More” may have taken its final bow at the McKittrick Hotel in Chelsea in January — but the drama’s not over.
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.