It’s 3:45 on a Thursday afternoon, and Rod Surut is still in shock.
Two days ago he had been worth millions, rich in pharmaceutical stock that was climbing past $125 a share that he bought at $2 per. In a matter of hours, the stock began to collapse under its hype and the margins Surut had been buying on destroyed his finances. Two minutes earlier, he cancelled his order at the Porsche dealership after a suffering a margin call that has plunged him into unfathomable debt. The vacation is over; time to go back to Manhattan and pick up the pieces.Rod has always been tantalized by risk. He’s made a living in a roller coaster industry: the New York City nightlife. Starting as a busboy and dishwasher before eventually making his rounds as bartender, Rod grew up in the shark-infested waters of New York business. He took notes until he stumbled upon a spark.
Rod opened his first club, the Naked Lunch, in the then-awkward, now famous neighborhood of SoHo. The Naked Lunch opened with perfect timing, and latched onto SoHo’s rising star. It was a goldmine. Rod had tasted success and won credibility in the industry, which meant it was time for just one thing. Open another place. The opening of the Gemini Lounge gave him two clubs making money like printing presses in NY. Rod then set his sights on Miami.
Miami was just beginning to hit its stride during the early 90s when South Beach was becoming a destination for clubbing and nightlife and it was the city Rod wanted to ride to the top with. He wasn’t ready to settle down just yet, but he was confident Miami was the next step on the way. Rod founded a company, joined up with a partner, found a proper site – everything was going well until he began to see, for the first time, his all-star security drop in value. In Miami, when it rains it pours. 145 was soon 110 and then 72 and lower until it didn’t matter – the margin call on his debt was devastating. The Midas touch had officially turned into a death blow. Forced to borrow money and unable to carry his part of the investment in Miami, Rod, his wife, and newborn daughter, Romi, returned to New York.
Having sold Gemini Lounge to help cover his debt Rod now faced the cash crunch of an aging club, a family, and a debt few will ever know. Rod had seen the other side…and been kicked back across the fence. As he saw it, there was only one thing to do yet again. Build. Downtown. Planning turned out to be the easiest part. It was hard sale to investors given the neighborhood and expense at close to two million dollars. Shy of the money he needed Rod began construction yet again. Staring failure right in the face, unable to pay his rent or his staff, let alone his own bills, Rod was close to bankruptcy and having his newest club seized before the velvet ropes were ever lifted.
The whole project was halted; disaster appeared to plague Rod again. But more determined then ever to prove his critics wrong, he went out and found the money, with only days to spare, he was able to pay his rent and hire back his crew. Two years and two million dollars later Romi finally opened in October 2003 on Rector Street, in the heart of ground zero.
Over the past year, Surut has looked more like a pioneer than an entrepreneur. Once the center of the corporate universe, in recent years downtown Manhattan has looked more like a ghost town. Whether it is painful memories, constant construction, or economic downturn, the crowds have just not come since September 11th. But much like Surut has rebuilt his own life, he is giving new life to those south of Canal Street. In the cultural renaissance of downtown nightlife,
Rod Surut is the master painter.
Follow Us