T
he curtain may have fallen on "Sleep No More," the immersive theatrical spectacle that brought a noir-style Macbeth to life in Chelsea's McKittrick Hotel, but the drama is far from over. The show, which had been a staple of New York City's theater scene since 2011, closed its doors in January after producers Arthur Karpati and Jonathan Hochwald failed to pay millions in rent and legal fees.

    A New York judge has ruled that Karpati and Hochwald are liable for approximately $5 million in unpaid rent and legal fees, siding with the show's landlord, Centaur Properties. The decision follows a year-long battle between the two parties, which included four separate lawsuits and a courtroom showdown.

    According to court filings, Centaur forgave over $5 million in rent during the COVID-19 pandemic to give the show financial breathing room. However, after the show resumed and reportedly became profitable again, Centaur alleges that Karpati and Hochwald defaulted on their payments in 2023, accruing an additional $4.5 million in rent arrears.

    The show's producers had planned to end production in early 2024 but extended its performances for another year due to popular demand before finally closing the curtain in 2025. Karpati and Hochwald countersued Centaur, claiming they were fraudulently coerced into signing a lease amendment that wiped their slate clean, but the court rejected these claims.

    Centaur's attorneys, Terrence and Darren Oved, stated that the dispute was "not about principle but about principal" and that the producers' complaint was a baseless attempt to avoid paying over $4 million in past due rent. The court dismissed all counterclaims brought by Karpati and Hochwald and found them jointly liable for the amounts owed under the lease.

    The decision has left the show's producers with a significant financial burden, and it remains to be seen how they will fulfill their obligations to Centaur Properties.