http://www.nytimes.com/2009/09/16/dining/16tavern.html
Looks like they got hit by fall in corporate events and big weddings, 60% of revenue was such events rather than regular dining. It looks like over the past year, Tavern stopped paying employee benefits and needed $2MM loans just to make payroll and buy food. Then NYC did not renew their 20 year lease. I don't know why, perhaps because you don't lease a prime location to someone who is losing money, negative cash flow, and borrowing money just to pay payroll.