Hurricane-Damaged Restaurant Sells “Junk Bonds” To Pay For Rebuilding

In the world of finance, junk bonds are high-yield, high-risk investments. But a restaurant in Brooklyn’s Red Hook neighborhood, which was particularly hard-hit by Hurricane Sandy, is selling “junk bonds” that offer no return on your investment other than a decent meal and a good feeling that you’re helping a local business rebuild.

Like a number of homes and businesses in Red Hook, the basement of Fort Defiance Cafe & Bar was completely full of flood water thanks to Sandy. This meant severe damage to the refrigerators and everything else stored down there to go along with the havoc wreaked on the electrical, plumbing and furnace.

“Our insurance company isn’t giving us one thin dime, and all the government offers are diaster loans,” writes the restaurant.

Thus, Fort Defiance came up with the idea of “junk bonds,” which are essentially gift certificates that cost twice the face value.

Explains the Fort:

“You give us $20, we send you $10 in gift certificates. You send us $100, we send you $50 in gift certificates. Got it? Junk bonds—not worth what you pay for them! It’s a terrible deal for you, but we really need the money!”

Anyone interested in buying a bond can check out this page.

This is just one of several interesting campaigns being run by local businesses to help pay for the damage done by Hurricane Sandy. Eater.com has an interesting roundup of other efforts you might want to check out.