chapter 11

Luxury Furniture Retailer Robb & Stucky Bought By Liquidators

Filed under: Decor

Last month I mentioned that luxury furniture retailer Robb & Stucky had filed Chapter 11. Now it looks like the brand, which is based in Florida and also has stores in Arizona, Nevada and Texas, is facing potential liquidation.

Furniture Today reports that a U.S. Bankruptcy Court in Tampa, Florida has approved sale of the brand to liquidators Hudson Capital and Hyperams. Hudson Capital and Hyperams were the stalking horse bidder and the only validated bidder at an auction to sell off the brand. When the brand filed Chapter 11 in February it was hoping to raise enough money from potential investors to make a bid to keep the company in business. The Naples Daily News reports that the fate of the stores remains up in the air. Liquidation would mean that employees would lose their jobs, stores would close and customers could lose deposits they have put down on furniture.

The company sells a variety of high-end collections including Ralph Lauren home, Keno Brothers and Tommy Bahama. It was founded in 1915 in Florida. At the time of the Chapter 11 filing it listed assets and debts in the range of $50 million to $100 million. It employs about 1,300 people.

Tags: chapter 11, furniture brand, furniture retailer, liquidation, robb stucky

David Barton Gyms Files Chapter 11

by Deidre Woollard (RSS feed) —

The high-priced David Barton Gym is straining under the weight of its own debt. Crain's New York reports that the gym, which has three locations in New York City as well as Chicago, Miami and Bellevue, Washington, has filed for Chapter 11 bankruptcy protection. The fitness center's revenue last year was nearly $28.3 million which was an 18% uptick from the previous year but the company's debt was much bigger, $65.5 million. Part of the gym's appeal, a dedication to luxury and flash, has also been its problem. The gym has a total of around 13,500 total members.

The David Barton Gyms will remain open during the resturcturing and the company is entering into an agreement with Meridian Sports Club, a company which also uses the name Bodies in Motion and has health clubs in California and Hawaii. Meridian plans to open a new Las Vegas David Barton Gym in September and Los Angeles gyms are also planned including one in the old Tower Records building. As the Crains article points out, both Bally Total Fitness and Crunch Fitness emerged successfully from Chapter 11 protection in recent years. Shown at right is David Barton himself on the occasion of the gym's toy drive during the holiday season. The NY Post says that Meridian CEO Chuck Grieve will become chairman of David Barton Gyms but that Barton will remain CEO.

Tags: chapter 11, chapter 11 bankruptcy, david barton, david barton gym, fitness centers, gyms

Luxury Furniture Store Robb & Stucky Files Chapter 11

by Deidre Woollard (RSS feed) —

Filed under: Decor

Luxury furniture retailer Robb & Stucky has filed for Chapter 11 bankruptcy protection here. The company sells a variety of high-end collections including Ralph Lauren home, Keno Brothers and Tommy Bahama but has struggled in recent years partly because its strongholds are in markets in Florida, Arizona and other challenging real estate markets.

The company, which was founded in 1915 in Florida, has listed assets and debts in the range of $50 million to $100 million. Furniture Today reports that the bulk of the company's unsecured creditors are home furnishings companies which are owed about $8 million. The brand issued a press release saying that it is looking for a buyer. It employs about 1,300 people and stores will remain open during the transition.

Tags: chapter 11, furniture retailer, furniture store, robb stucky, robb and stucky

Five Luxury Resorts File For Chapter 11

by Deidre Woollard (RSS feed) —

Five luxury resorts across the country have been placed into Chapter 11 by an investor group led by hedge fund Paulson & Co. The resorts were group of holdings formerly known as CNL Hotels & Resorts Inc. The five are the Arizona Biltmore Resort & Spa in Phoenix, Arizona; the Doral golf resort in Miami, Florida; La Quinta in Palm Springs, California; the Claremont in Berkeley, California; and the Grand Wailea Resort Hotel & Spa in Maui, Hawaii.

The Doral, shown at right, is famous for its golf course known as the Blue Monster and hosts an annual PGA Tour event. The Claremont Hotel Club & Spa has been around for nearly a century and was once a residential hotel, convention hall and concert venue for Louis Armstrong and others. Now it is a luxury resort in the hills outside of San Francisco with a 20,000-square-foot spa. La Quinta Resort & Club has 45-acres grounds, 41 pool and five world class championship golf courses.

It will be business as usual for all resorts involved. The five resorts and their affiliates listed assets of $2.2 billion and debts of $1.9 billion in court papers. Paulson is offering the properties a $30 million bankruptcy loan to keep going. Each of the resorts is managed by a third party operator.

Tags: chapter 11, chapter 11 bankruptcy, claremont resort, doral, la quinta

Brunschwig & Fils Files Chapter 11, May Be Sold To Competitor

by Deidre Woollard (RSS feed) —

Filed under: Decor

Luxury wallcovering brand Brunschwig & Fils recently announced that the family-owned company has filed for Chapter 11 restructuring and that Kravet, a fabrics and home furnishings company and former competitor has agreed to buy the company. Brunschwig & Fils is an 111-year-old distributor of wall coverings and upholstery fabrics. It listed assets of $10.9 million and debt totaling $18.4 million. The recession led to a 35% decline in sales in 2009 and a 30% decrease in 2010 as less people poured money into their homes.

Home Textiles Today reports that Kravet , a 93-year-old-brand, has offered $6.5 million in cash plus other considerations. Brunschwig & Fils wants other offers by March 3, with an auction not more than two days later to see if anyone will top Kravet's offer. There are no plans to close the 17 Brunschwig & Fils showrooms in the U.S. and three abroad. Brunschwig CEO Olivier Pearson called the restructuring a business decision and said that "our relationships with the lines we represent remain intact and the Brunschwig & Fils Design Studio is creating new patterns for future release."

Tags: brunschwig fils, chapter 11, fabric, kravet, wallcoverings

Downtown Nashville's Hotel Indigo Files Chapter 11

by Deidre Woollard (RSS feed) —

Filed under: Luxury Travel & Hotels

Bad news for one of Nashville's two Hotel Indigo properties. The Tennessean is reporting a default on a $17.5 million loan on the property for the Hotel Indigo on Union Street in downtown Nashville, Tennessee. The hotel property's owner, 315 Union Street Holdings LLC., and the owner of the hotel business itself, Union Street Plaza Operations LLC, each filed separate Chapter 11 petitions in U.S. Bankruptcy Court in Nashville last week. They listed total combined debts of about $25.6 million against assets of about $14.1 million, which takes into account the $13.1 million value of the real estate. The article states that Branch Banking & Trust of Atlanta holds the $17.5 million loan and seeks to foreclose on the property.

Mark Lineberry, the president and majority stockholder of the two companies, said that the Chapter 11 filing was an effort to hold off foreclosure and work toward a possible restructuring. As is usual in these types of cases, the hotel remains open for business. Lineberry told the Tennessean that the hotel is doing well and making money. The other local Hotel Indigo, on West End Avenue, is not affected.

The Hotel Indigo on Union Street opened last fall in two historic buildings, 301 Union and 315 Union, which were combined. The 301 Union structure, built in 1909, was originally the American Trust Building; the other, built in 1926, was the Nashville Trust Co.

Tags: chapter 11, hotel indigo, hotels in trouble, nashville

Chapter 11 Filed For Halsey Minor's Landmark Hotel

by Deidre Woollard (RSS feed) —

Filed under: Luxury Travel & Hotels

More bad news for CNET founder Halsey Minor. We've been watching as he has divested himself of some of his art and real estate and now his long-stalled Landmark Hotel project in Charlottesville, Virginia is in major trouble. Minor Family Hotels, LLC, the official owner of the hotel, filed for Chapter 11 bankruptcy protection in federal bankruptcy court.

Minor made around $100 million from the sale of his technology company CNET in 2000 but he has spent quite a bit since then. In 2006 he bought a home in the Bel Air area for $20 million. In 2008 he put the home on the market for just $12.9 million and rumors were that much of the home was in disrepair. He eventually cut down the price to $11.4 million. It appears to be still owned by Minor and is not on the market. In 2007 he bought the Koshland mansion in San Francisco, an eight-bedroom mansion built to resemble Marie Antoinette's Le Petit Trianon and was reported to be spending $15 million to fix it up. Fox Ridge Farm, his 205-acre farm near Charlottesville, Virginia faced foreclosure twice but Minor eventually brought the mortgage current avoiding a second public auction in February 2010. The stalled Landmark Hotel project has remained in a state of partial construction for years.

In a press release Minor Family Hotels stated that it filed Chapter 11 "in order to more quickly resolve the burdensome lawsuits that have prevented it from completing construction and putting people back to work." Minor is fighting off a total of eight lawsuits involving the Landmark Hotel, in Georgia and Virginia courts. In the release, Minor says that he remains committed to seeing the project through.

A trial involving Minor, former Landmark developer Lee Danielson, the FDIC and Specialty Finance Group, the real estate financing company that was supposed to lend Minor $23.6 million for the construction of the hotel in 2008 was scheduled for November. Specialty Finance Group's parent company, Atlanta-based Silverton Bank failed in May of last year and was taken over by the FDIC. The Chapter 11 filing means that the trial is on hold. The loan for the Landmark is divided among multiple banks. Documents in the bankruptcy suit show 20 creditors. Some have criticized the Chapter 11 filing as just a stalling tactic and question whether the 100-room boutique hotel project will ever be completed.

Tags: chapter 11, chapter 11 bankruptcy, charlotte, Charlottesville, halsey minor, landmark hotel

Sea Island Company Files Chapter 11, Plans Sale

by Deidre Woollard (RSS feed) —

Filed under: Luxury Travel & Hotels

Since 2008 we've been chronicling Sea Island's financial troubles. The Georgia resort, which once hosted the G8 Summit and has been visited by presidents, celebrities and dignitaries of all sorts, has now filed for bankruptcy, unable to pay back more than $600 million in debt. The company has been owned for six decades by the family of William "Bill" Jones III but is now planning to sell its luxury resorts.The sale includes the Cloister at Sea Island, shown above, which won three Mobil five-star awards in 2009 for the hotel, the Cloister Spa and its restaurant, the Georgian Room.

The economic downturn has meant empty hotel rooms for the luxury enclave which has been struggling with debt since a massive redevelopment and expansion of the resort that cost more than $400 million. The plan calls for the Sea Island Company to sell its four resorts, three golf courses and two private clubs for a total of $197.5 million to a group of investors represented by two private firms. The AP reports that the new owners would be investment managers Oaktree Capital Management of Los Angeles and Avenue Capital Group of New York. Company CEO Bill Jones III will stay in place as top executive but will lose his controlling interest in the resort. The resorts will remain open, keeping around 1,400 workers employed. The Atlanta Journal Constitution stated that the official auction will take place in October with closing by November. The article mentions that some locals are concerned over the the takeover, worried that new owners could change part of the Sea Island magic that has kept people coming to the resort since the late 1920s.

Tags: chapter 11, chapter 11 bankruptcy, georgia real estate, sea island

Siena Hotel Casino In Reno Files Chapter 11

by Deidre Woollard (RSS feed) —

Filed under: Luxury Travel & Hotels

No luck in Reno as the Siena Hotel Casino has filed for Chapter 11 bankruptcy. The hotel made the move so that it can stay open and reorganize its debt. The Siena has been months behind on paying its gaming taxes and was at risk of losing its gaming license. It has also been behind on other state taxes and fees. Casino's employees were also dropped from their health coverage because the Siena didn't pay its bills and it owes $400,000 to NV Energy.

Siena owner Barney Ng has invested about $100 million into the Siena since 2000 in both loans and his own capital and has a $50 million loan. In December the hotel and casino property had received a notice of default and threat of foreclosure from its lender and last month the casino closed its table games. The property has a 214-room hotel and employs around 300 people (down from 500 at its peak). It remains open.

Tags: bankruptcy, chapter 11, hotels in trouble, reno, siena hotel

Jennifer Convertibles Files Chapter 11, Plans Store Closures

by Deidre Woollard (RSS feed) —

Filed under: Decor

Furniture brand Jennifer Convertibles filed for Chapter 11 bankruptcy protection over the weekend in New York. The popular seller of affordably priced sofabeds and other furniture listed assets of around $26 million and debts of $46.4 million. Furniture Today reports that the brand has already reached an agreement with its largest creditor, Chinese upholstery producer Haining Mengnu, in order to keep products coming to the company. The terms of the deal require Mengnu to continue to supply the retailer and convert some of the pre-petition debt into common equity of the company. The company plans to continue operations through the reorganization.

Jennifer Chairman and CEO Harley Greenfield told Furniture/Today that the company is making plans to leave the Atlanta, Chicago, Philadelphia and Boston metro area markets as well as the states of Michigan, Florida and North Carolina. A press release stated that "the expected plan of reorganization does not contemplate that there will be any continuing value for the present stockholders of the Company."

Tags: chapter 11, chapter 11 bankruptcy, furniture stores, jennifer convertibles, jennifer furniture, retailers in trouble

Luxury San Diego Hotel Files Chapter 11

by Deidre Woollard (RSS feed) —

Filed under: Luxury Travel & Hotels

The Sè San Diego has become the latest luxury hotel to file Chapter 11. The San Diego Union-Tribune reports that 5th Avenue Partners, the owners and operators of the 184-room boutique hotel, filed Chapter 11 to prevent the main lender WestLB AG Bank from appointing a receiver to take over. As of last month, Fifth Avenue Partners owed around $73 million. The hotel's construction loan came due in May 2009 just five months after it opened in late 2008. In 2008 we covered the opening of the hotel and the creation of the West Coast's largest hotel penthouse, a three-floor spread going for $20,000 a night.

It also has 22 unsold condos, the Se Residences, that sit atop the hotel. The hotel has struggled to find its place in San Diego's tourist market but does have a thriving nightclub, Siren, a rooftop pool bar & lounge that is popular with both locals and vacationers. The hotel has received good reviews and was on Condé Nast Traveler's 2009 Hot List. The Union-Tribune reports that in the filing Fifth Avenue said it would make almost $4.7 million over the next 13 weeks with total expenses of around $4.4 million. There are signs that a turnaround in both the hotel-condo and luxury travel markets is coming but the question is whether or not the property can manage its finances well enough to hold on until then.

The hotel remains open for business and is offering a Summer Lovin' package that includes accommodation, a summer facial in Sè Spa, Sè Spa Pedicure featuring OPI Summer Collection Polish, daily breakfast for two ($50 daily credit) and valet parking starting at $429 plus tax.

Tags: chapter 11, chapter 11 bankruptcy, hotels in trouble, se san diego

NFL Player Mark Brunell Files Chapter 11

by Deidre Woollard (RSS feed) —

Filed under: Sports

Another sports player is facing financial trouble. This time it's quarterback Mark Brunell, who won a Super Bowl last season as a backup quarterback for the New Orleans Saints. Brunell was paid nearly $52 million during his past 10 years in the NFL but filed bankruptcy on Friday. Brunell has been a three-time Pro Bowl pick but he hasn't been so successful off the field; he's facing multiple lawsuits over failed real estate and business loans. He was involved in a partnership called Champion LLC that included other NFL players Joel Smeenge and Todd Fordham (Smeenge has previously filed for bankruptcy). Brunell invested in Florida real estate including a project in Jacksonville Beach that had a $2.2 million loan made by CNL Bank in 2005. CNL began foreclosure proceedings on the property last year after accusing the partners of defaulting on the loan.

According to the Florida Times-Union, Brunell also invested in several other failed real estate projects in Michigan and Michigan-based Select Bank won a $1.1 million judgment against Brunell and his partners. Brunell has tried to keep up with the payments on his own but was no longer able to do so. "The timing of the group's real estate acquisitions at the height of the real estate market, in hindsight, clearly was not good," Brunell said in a statement e-mailed to the Times-Union. Brunell is currently a free agent and has not signed with another NFL team.

Brunell, who used to play for the Jaguars, has been active in the Jacksonville community, and created the Brunell Family Foundation in 1997 to raise funds for critically ill children and their families.The organization has raised nearly $800,000 to benefit charitable causes.

Professional athletes face a lot of choices when it comes to spending their money. Often real estate looks like a stable place to put one's money and see it grow rapidly but many athletes have faced trouble as the real estate market floundered and developments went belly-up.

Tags: bankruptcy, chapter 11, mark brunell, nfl

David Webb Brand Bought In $11 Million Deal

by Deidre Woollard (RSS feed) —

Filed under: Jewelry

Around this time last year jewelry company David Webb Inc. filed for Chapter 11. Now the brand has officially exited Chapter 11 after being purchased by a trio of jewelers, Mark Emanuel, Sima Ghadamian and Robert Sadian. All have had extensive experience in the jewelry industry and have worked behind the scenes for other jewelry companies.

National Jeweler reports that the $11 million deal followed a sale hearing held at the U.S. Bankruptcy Court of the Southern District of New York in Manhattan on May 20. The sale included $7.5 million in finished goods. Per the terms of the agreement $2.75 million of the sale proceeds will go toward the debtor's secured claim and another $250,000 would go toward the rental charges incurred. The rest of the proceeds will be held in escrow and disbursed only by further court orders. Last year the brand reported assets of $10.3 million and liabilities of $6.9 million. Gross sales for the fiscal year ending June 30, 2008, were $13.2 million but total sales for the coming fiscal year ending June 30, 2009 were under $5 million.

The David Webb brand was founded in 1948 by David Webb and Nina Silberstein, and has been owned since 1975 by the Silberstein family. The brand has two retail locations, a flagship store on Madison Avenue in Manhattan and a small store at the Regent Beverly Wilshire Hotel in Beverly Hills, California. There is also a factory where the brand manufactures its own jewelry. The company has provided jewelry for some of the most legendary jewel connoisseurs in the world including Elizabeth Taylor, The Duchess of Windsor and Princess Grace. David Webb pieces which often feature animals and naturalistic themes remain some of the most collectible pieces in the jewelry world.

Tags: chapter 11, chapter 11 bankruptcy, david webb, jewelry

Barcalounger Files Chapter 11

by Deidre Woollard (RSS feed) —

Filed under: Decor

Barcalounger, a brand famous for its reclining chairs and its sister company, contract furniture source American of Martinsville, have filed for Chapter 11 bankruptcy protection. Furniture Today reports that the joint filings were made a little more than a month after the two companies shut down their factory in Martinsville, Virginia. Parent company Hancock Park Capital has agreed to sell the companies to another affiliate of Hancock for $1.5 million. It is the largest unsecured creditor with claims totaling $32.4 million but will waive the claim if the sale to its affiliate is approved. The sale has to be approved by the bankruptcy court which would hold an auction if another bidder is interested.

Papers filed cite the economy and a downturn in furniture sales as a reason for the filing. Hancock Park bought Barcalounger in 2005 and purchased American of Martinsville from La-Z-Boy in 2006. The investment firm shut down Barcalounger's factory in Rocky Mount, N.C., about a year ago and moved production to the American of Martinsville plant. That factory was closed without warning on April 16. Barcalounge began making reclining chairs in 1940 and now also supplies chairs for home theaters.

Tags: american of martinsville, bankruptcy, Barcalounger, chapter 11, furniture

Rock & Republic Files Chapter 11

by Deidre Woollard (RSS feed) —

Filed under: Apparel

Bad news for fashion brand Rock & Republic. The Los Angeles-based company famous for pricey jeans with embellished pockets has filed for Chapter 11 bankruptcy protection. The company plans to continue business as usual and is taking the Chapter 11 opportunity to reorganize and as the LA Times puts it, explore financial relationships, otherwise known as finding friends with deep pockets.

The brand was founded by Michael Ball in 2002. It gained attention for partnering with Victoria Beckham for a line of pricey denim with a crown on the rear. The brand expanded from clothing into sunglasses, handbags and cosmetics but quotes from Geoffrey D. Lurie, the company's newly named chief restructuring officer, indicate that the company will be focusing more on its core apparel and footwear businesses. At the start of 2009 Michael Ball told the AP that "the days of the $300 jeans are gone." Rock & Republic then launched the Limited Edition Recession Collection selling jeans for under $150. They haven't dropped the decadence entirely though, the Crazy B!@#H jeans shown here in Dementia Black sell for $385.

Tags: chapter 11, chapter 11 bankruptcy, denim, jeans, michael ball, rock and republic

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