Commercial Bankruptcy

December 19, 2024

H Group Capital LLC sold the 27,591-square-foot lot on N.E. Second St. to Arosa Developers. Safe Harbor Equity Distressed Debt Fund 3 filed a foreclosure complaint against H Group Capital over this property concerning a mortgage with $5.75 million in principal outstanding, alleging the borrower missed payments. The parties settled the foreclosure lawsuit after H Group Capital found a buyer for the site.

December 16, 2024

The office building at 1015 15th St. NW was traded "in lieu of foreclosure pursuant" from Blackrock to Pacific Retail Capital Partners. The building runs 13-stories and is 196,651-square-feet. Blackrock first acquired the property in 2006 from TIAA-CREF for $91 million. The office, built in 1978 and renovated in 2020, has 38,863 square feet of office space available for lease.

November 26, 2024

The company filed for Ch. 11 bankruptcy, listing up to $10 million in debts against $1 million in assets. However, the filing is being challenged by Robin Fleming, the organization's CEO, who claims sole ownership since purchasing the company in Dec. 2022. Fleming alleges that Glenn Straub, listed as the company's owner in the filing, acted without authority and aims to derail the upcoming Miss America pageant, scheduled for Dec. 31, 2024. Fleming argues the filing is a tactic to create "chaos and confusion" in ongoing litigation, asserting the organization is not in financial distress.

November 20, 2024

The company's 28-story Redwood Tower at 201 N. Charles St. was sold for $2.55 million in an online auction, below the $4.1 million the building sold for at foreclosure in 2022. The buyer was not identified. 201 N. Charles St. was built in 1968 and is just over 53% leased. Blue Ocean Realty acquired the property for almost $20 million in 2013.

November 18, 2024

The no-frills air travel company filed for bankruptcy protection, sparked by a long run of quarterly losses, failed merger attempt and upcoming debt maturities. Spirit is the first major U.S. airline to file for Chapter 11 since 2011. The airline hasn't posted a full-year profit since 2019 and has been facing an uncertain future after the collapse of its $3.8 billion planned merger with JetBlue Airways.

November 13, 2024

The parent company of American Freight filed for bankruptcy and is closing all 328 American Freight stores nationwide, including 33 locations in Fla. The company cited financial issues due to sustained inflation and macroeconomic challenges. The closures will be accompanied by store closing sales with discounts up to 30% off. Franchise Group will focus on restructuring and its other brands such as Pet Supplies Plus, The Vitamin Shoppe and Buddy’s Home Furnishings.

November 13, 2024

A mortgage foreclosure auction for a vacant building in downtown Albany was rescheduled for Dec.19 after the owner's Chapter 11 bankruptcy petition was dismissed. The property at 17-21 North Pearl St., formerly leased to Walgreens, will be auctioned in the rotunda of the Albany County Courthouse. The owner, United Assets Corporation, defaulted on the mortgage and real estate taxes, owing an estimated $641,497 plus interest and fees to JG Funding Corp. 

November 12, 2024

Big Lots initially planned to close nearly 550 stores but has now reversed the decision for over two dozen locations. These stores, previously marked for closure, have had their 'closing' banners removed and replaced with 'Share your big ideas' banners. The change reportedly followed renegotiations of store leases. Employees at these locations have been informed, and any closing-related sales have ended, with prices returning to normal.

November 02, 2024

The dining chain filed for Chapter 11 bankruptcy protection after grappling with prolonged financial challenges, primarily driven by the COVID-19 pandemic and the company's capital structure. TGI Fridays will maintain operations across its corporate-owned 'happy hour' dining places in the U.S., stating it secured a financing commitment to support operations. The company says the restructuring will allow its restaurants to proceed with an optimized corporate infrastructure and normal operations will continue in all of the franchise locations both in the U.S. and internationally.

October 30, 2024

A U.S. bankruptcy judge approved the sale of Tupperware Brands, allowing the company to exit Ch. 11 protection. The deal involves a group of lenders purchasing Tupperware's brand name and operating assets for $23.5 million in cash and over $63 million in debt relief. Tupperware will operate as The New Tupperware Co, continuing to sell products online and through its network of independent sales consultants.

October 29, 2024

The Fla.-based maker of joint replacement implants owned by TPG Capital filed for Ch. 11 bankruptcy in Del. The company is facing over a thousand lawsuits alleging that its hip and knee implants were defective and caused harm to patients. Exactech listed assets and liabilities each between $100 million and $500 million.

October 29, 2024

The Diocese of Buffalo sold its Christ the King Seminary in East Aurora to World Mission Society of God for $4.2 million. The 118-acre seminary is located at 711 Knox Rd. The sale was approved by a federal bankruptcy judge as the diocese and seminary board chose to close the facility in 2020 due operating deficits of about $500,000 a year. The seminary has 18 buildings that include classrooms, a 460-seat auditorium, a chapel, a library, six dormitories, a large commercial kitchen and a gymnasium.

October 22, 2024

After failing to emerge from Chapter 11 bankruptcy, baby wares seller BuyBuy Baby said it will close all of its physical stores by the end of the year and transition into a "strategic reset" as a "digital-first brand." The retailer said it will move all of its sales to an online portal exclusively. The decision comes after BuyBuy Baby filed for Chapter 11 in Apr. 2023 after its former parent company, Bed Bath & Beyond, also filed for bankruptcy and liquidated all of its stores. BuyBuy Baby has up to 120 locations nationwide, all of which will be closed and sold off.

October 18, 2024

The company has taken control of the distressed office building at 88 University Pl. in Greenwich Village from Arch Companies for $48.6 million. The building at 88 University Pl. was previously owned by former WeWork CEO Adam Neumann, who purchased it with his partner in 2015 for $70 million. The building saw multiple tenants leave during the pandemic, ultimately putting it into foreclosure.

October 18, 2024

SGD Wellington Crossing sold the 136-unit senior living facility at 8785 Lake Worth Rd. to Walton Street Capital. The seller said the sale was in lieu of foreclosure, so the $23.5 million value was based on the outstanding balance of the mortgage in exchange for transferring the property. Totaling 131,955 square feet, the senior living facility was built on the 11.75-acre site in 2018.

October 15, 2024

The retailer initiated voluntary Chapter 11 bankruptcy proceedings and entered into an agreement to sell substantially all of its business operations to Do it Best Corp., a former rival. Do it Best will serve as the stalking horse bidder for True Value with an acquisition price of $153 million in cash and the assumption of $45 million in contracts and other obligations. True Value said it came to the decision to enter bankruptcy and sell after a "thorough evaluation" to figure out how to maximize value and best serve its retail partners and other stakeholders.

October 11, 2024

ICM Development's Bahama Bay II Development LLC and BB2 Development Holdings LLC, associated with South Florida developer Carlos Balzola, filed for Chapter 11 bankruptcy protection on October 4 in the Middle District of Florida. The companies are involved in a condo transformation project in Davenport, which has faced issues after taking over from a previous developer. The project includes 160 existing condos and plans for 244 new units. CRE Credit Fund IV Financing III LLC, linked to Calmwater Capital, is owed $62.5 million by Balzola's firms. An auction for the assets was canceled due to the Chapter 11 filing and the future of the Bahama Bay condo project is now dependent on the bankruptcy outcome.

October 10, 2024

The College of Saint Rose in Albany filed for Chapter 11 bankruptcy protection as it proceeds with winding down operations. The college, which ceased academic instruction, has assets valued at a net book value of approximately $100 million, but the fair market value is pending until property sales are finalized. Saint Rose has debts totaling $56.5 million and lists 50 to 99 creditors. The bankruptcy filing is intended to facilitate an orderly wind-down and settlement of affairs, including the sale of its 48-acre campus to cover debts, such as the $48 million owed to bondholders. The college has engaged JLL to market its properties, which include 72 buildings on 92 parcels.

October 11, 2024

Electric vehicle startup Fisker received court approval for its bankruptcy liquidation plan, which includes a $46 million sale of its remaining inventory of about 3,000 Ocean SUVs. The approval allows Fisker to repay creditors with assets remaining after the sale of its vehicle fleet. The company filed for bankruptcy in June after failing to secure a partnership with Nissan for EV production. This resulted in cash flow issues, forcing Fisker to pause vehicle production and lay off staff before deciding to liquidate. The sale of the vehicle fleet to American Lease also encountered a last-minute hurdle due to difficulties in transferring essential data and support services to the buyer's servers.

October 02, 2024

Starwood Property Trust paid $22.8 million for the 12-floor, 71,000-square-foot office building at 29 W. 35th St. Starwood acquired the property after hosting a foreclosure auction to find other buyers earlier in 2024, but failed to find any buyers. Empire State Equities was the seller, and owned the 113-year-old Midtown South office building for 17 years, and faced multiple foreclosures on the property due to low tenant numbers.

September 30, 2024

Owning warehouses in Hollywood and Dania Beach, the company filed Ch. 11 reorganization with $5.36 million in secured debt. The company is 100% owned by Bryan Hacht. Aphex owns the 21,927 square feet of warehouses on 1.67 acres at 3580 and 3590 S.W. 30th Ave. in Hollywood, and in Dania Beach it owns industrial condo Units 107 and 108, which total 3,080 square feet, at 2960 S.W. 23rd Terr. The largest secured claims in the case were $4.6 million for a loan on the Hollywood property, a $750,000 loan from DSTZ on both properties and $10,000 in condo association dues on the Dania Beach property.

September 26, 2024

Big Lots announced the closure of 392 stores, including 11 in Texas and six in Calif., with discounts of up to 50%. The company filed for Chapter 11 in early Sept. and plans to close a third of its 1,392 locations as part of its restructuring efforts. The latest closure list was filed on Sept. 20.

September 26, 2024

PHCV4 Homes, Bridgetopia and Prominence Homes Communities filed for Chapter 11 bankruptcy. The filings occurred between September 10 and September 12, with Bridgetopia filing under Subchapter V. Prominence Homes, one of Birmingham's largest private companies, is known for its build-to-rent communities across the state and built over 400 homes in 2021. The attorney for PHCV4 is Frederick Garfield, while Stephen Leara represents both Prominence Homes Communities and Bridgetopia. 

September 24, 2024

A court-ordered bankruptcy sale was held to offload Cypress Creek Florida's 20,150-square-foot office and 18,048-square-foot private hangar with a two-bedroom apartment at 1200 and 1400 N.W. 62nd St. The buildings were developed on the 10.7-acre site in 1993 and saw renovations in 2018.

September 23, 2024

Johnson & Johnson's (J&J) subsidiary, Red River Talc, filed for bankruptcy for the third time to resolve over 61,000 lawsuits claiming its talc products caused cancer. The subsidiary's settlement offers $8 billion to claimants over 25 years, surpassing its previous offer by $1.75 billion. J&J maintains its products are safe but seeks to settle through this bankruptcy strategy, which has received support from 83% of current claimants. J&J agreed to contribute an additional $650 million to resolve the claims for legal fees and expenses sought by plaintiffs' counsel.

September 18, 2024

Tupperware Brands filed for Ch. 11 bankruptcy protection, succumbing to mounting losses amid poor demand for its food storage containers. Sales have fallen in recent years as the company has lost shelf space to rivals making cheaper and more environmentally friendly containers. The company, which has been trying to turn its business around for years after reporting several quarters of falling sales, intends to obtain court approval to continue selling its products and charting out a sale process for the business.

September 18, 2024

The company sold the 13,480 square feet of retail at 100 Lincoln Rd., Units CU-1, CU-2, CU-39 and CU-40. The buyer was 100 Lincoln Road, who bought the space for $1,285 per square foot. The property was seized at a foreclosure auction in January 2023 after LoanCore Capital filed a $30.75 million foreclosure lawsuit against the property's previous owner of the property in 2021 and ultimately won a foreclosure judgment.

September 13, 2024

The real estate company will market 296 Big Lots store leases for sale in connection with the retailer’s bankruptcy proceedings and restructuring. Big Lots filed for Ch. 11 bankruptcy in Sept. to facilitate a sale of substantially all of its assets and operations to Nexus Capital Management. Big Lots has already received approval to commence a sale process of 144 store leases and will seek approval in the coming weeks for the sale process of the additional 152 leases.

September 09, 2024

Red Lobster Management received court approval for its Ch. 11 reorganization plan and is set to exit bankruptcy by the end of Sept. Under the plan, the restaurant chain will be acquired by RL Investor Holdings, with the acquisition including over $60 million in funding to revitalize the brand. Red Lobster will continue to operate independently, with 544 locations across the U.S. and Canada., and current CEO Jonathan Tibus will step down with a successor to be named soon.

September 09, 2024

The home goods retailer secured $707.5 million to support its operations and sell its business to private equity firm Nexus Capital, as it has initiated bankruptcy proceedings under Ch. 11. Nexus will serve as a "stalking horse bidder" in a court-supervised auction process, with the deal to close in Q4 2024 if it's is deemed the winning bidder. Big Lots, with 1,400 stores across the U.S. and employing more than 30,000 workers, has been struggling with declining sales, which it says has put pressure on its balance sheet.

September 04, 2024

Residential solar installer Lumio filed for Chapter 11 bankruptcy but plans to continue operations during the sale process, which is expected to complete in less than two months. Lumio entered a stalking horse asset purchase agreement with White Oak Global Advisors, proposing to acquire Lumio's assets for about $100 million through a credit bid. White Oak also plans to offer significant equity ownership to Lumio's employees if they are the successful bidder. 

September 05, 2024

Red Lobster successfully exited Chapter 11 bankruptcy after a federal judge approved its restructuring plan. The seafood chain, which faced a massive debt crisis and location closures, will be acquired by RL Investor Holdings, an entity controlled by Fortress Investment Group. The acquisition is expected to be finalized by the end of the month. Fortress has experience with bankrupt companies, having previously acquired Vice Media and Alamo Drafthouse. Damola Adamolekun is set to become the CEO of Red Lobster post-acquisition.

August 23, 2024

Sleiman Centers acquired a pair of St. Johns County, Fla. shopping centers via auction for a total of $10.7 million. The first property, located at 7440 U.S. 1 North, was purchased for $4.18 million. The second property is located off Palencia Village Drive and was purchased for $6.5 million. Both properties were previously owned by ArciTerra affiliates ATA Mercado St. Augustine and ATA Palencia St. Augustine.

August 16, 2024

Lenders JP Morgan and Citibank are looking to foreclose on RFR's $180 million loan tied to the 23-story office building at 475 Fifth Ave. RFR said the property is well-occupied and the building will meet its financial needs and satisfy its lenders. This is the third foreclosure notice for the company within the last two weeks.

August 12, 2024

LL Flooring filed for Chapter 11 bankruptcy in a Del. district court and secured $130 million in debtor-in-possession financing from a bank group led by Bank of America. The company's estimated assets are between $500 million to $1 billion, with liabilities ranging from $100 million to $500 million, as per the court filing. The company is looking to close 94 of its over 300 locations. 

July 03, 2024

The clothing brand filed for bankruptcy June 30 and is trying to sell its assets. If a sale doesn't occur, the company will have to close multiple sites in N.C., potentially leading to over 200 layoffs. The sites affected include two facilities in the Fayetteville area, one in Robeson and one in Concord. Layoffs are scheduled for Aug. 29 if they proceed. The company, based in Duluth, Ga., filed for bankruptcy in Delaware and has listed $337 million in assets and $244.5 million in total debt.

July 02, 2024

Basic Fun, the parent company of Tonka and Fisher Price Classics, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court. The company claimed liabilities and assets of $50 million to $100 million and reported owing $11.6 million to third party suppliers, vendors and other creditors. It is seeking court approval for $50 million of debtor-in-possession financing and plans to continue operations during restructuring. 

June 27, 2024

619 H Street NW, a 17,655-square-foot retail property in Washington, D.C., was sold for $7.4 million through a Ch. 7 Bankruptcy process, attracting nine offers. Baltimore Midtown was the buyer. The location is a shuttered restaurant, with the previous owner not disclosed.

June 24, 2024

The D.C. nonprofit bought the foreclosed building at 1776 Massachusetts Ave. at a foreclosure auction. ELV Associates purchased the building in 2012 for $45.5 million, and still owed $29.1 million when it was foreclosed upon in May 2024. The 91,312-square-foot, 1970s-era concrete building is roughly 40% leased.

June 20, 2024

The firm bought the former Delta Hotels by Marriott Baltimore Inner Harbor at 1 E. Redwood St from Charles Redwood Group Master. The 150-room hotel closed abruptly in Nov. with its signage removed and windows boarded up, and a lawsuit from Baltimore city officials soon followed. The sale settles the suit, which targeted Charles Redwood and others, alleging the property didn't pay its real property taxes, hotel tax revenue, personal property taxes or water usage.

June 20, 2024

State Farm Life Insurance, which moved to foreclose on the office building at 1750 H St. NW in Apr., instead acquired the building at a foreclosure auction. Office Properties Income Trust previously owned the building, and State Farm said they defaulted on their loan for the building in Q4 2023. The 123,000-square-foot, 10-story office was built in 2002 and was renovated in 2022.

June 20, 2024

EOS Hospitality acquired the William Vale Hotel in Brooklyn's Williamsburg neighborhood. The purchase was approved by the US Bankruptcy Court. Located at 111 N. 12th St., the hotel features 183 keys and runs 21 stories.

June 13, 2024

Co-living operator Common Living's filing for bankruptcy forced developer Morningstar Properties to take over management of its Charlotte apartment community. Common Living was behind the leasing and management of Foster Flats at 201 Foster Ave. but the company filed for Ch. 7 bankruptcy protection with plans to liquidate all of its assets. Morningstar owns the Foster Flats site and brought on Common to manage the 113-unit apartment complex.

June 05, 2024

Wilmington Trust won the foreclosure judgment against a JV between Gateway at Wynwood and 2830 Wynwood Properties over a mortgage with $101.7 million in principal outstanding, plus interest and fees, for The Gateway at Wynwood office building and a neighboring bank office. The 14-story office building at 2916 N. Miami Ave. and the 5,187-square-foot bank branch at 2830 N. Miami Ave. will go to auction in July. The lender filed the foreclosure lawsuit in Mar., alleging the borrower started missing payments in Dec. 2023.

June 03, 2024

The firm signed a contract to buy the landmarked 95 Madison Ave. and plans to convert the office property to a 70-unit residential building. The building, owned by the Sklar family for over 80 years, slipped into bankruptcy in 2021 after the family was unable to decide what to do with it. The home was designated a New York City landmark in 2018 and is considered one of the earliest examples of a luxury residence atop a commercial building.

May 17, 2024

Tony Cheng’s Seafood Restaurant was sold at auction for $7.4 million a year after the business filed for Chapter 7. Baltimore Midtown emerged victorious after a flurry of 48 offers drove the price up from the stalking horse bid of $4.25 million. Marcus & Millichap’s The Zupancic Group marketed the property as part of the bankruptcy proceedings.

May 08, 2024

VMC TRS 4, in care of loan servicer Trimont, sold the 51-room hotel at 2216 Park Ave. to Blue Suede Hospitality Group. MVC TRS 4 seized the hotel in Apr. in a deed in lieu of foreclosure in exchange for releasing $13.68 million in mortgage debt to the prior owner. Totaling 25,931 square feet, the hotel was built on the 13,600-square-foot site in 1934 and renovated in 2014.

May 02, 2024

The company filed a foreclosure complaint in Palm Beach County Circuit Court against Coal Lake Worth, HFGC Florida, Coal Capital Holdings and Coal Capital Group. The suit targets the 69,533-square-foot, 109-bed treatment facility at 4140 Lake Worth Rd. Lapis says the borrowers defaulted on the mortgage by missing payments starting Dec. 31, 2023, and owe $17.3 million in principal, plus interest and fees.

April 30, 2024

The company scooped up 55 Eckford St. for $7.2 million in a foreclosure auction. The property was previously owned by Eckford-Greenpoint. The unfinished building on site consists of a six-story steel structure, which the buyer plans to develop into a residential property.

April 29, 2024

Foreclosure proceedings have started for a Marriott hotel in Raleigh and 29 other affiliated hotels across the U.S. which are part of a portfolio linked to an over $400 million mortgage. The Courtyard Raleigh Midtown hotel was categorized as "in foreclosure" by KeyBank National Association, the servicer assigned to the hotel's loan. The owner of the Raleigh property is Highgate. The Raleigh property is part of a 30-hotel portfolio that entered special servicing last August after the property's owner defaulted on its $415 million mortgage by missing payments in July and Aug.

April 09, 2024

HUSA LH VN deeded the 51-room Kayak Miami Beach hotel, located at 2216 Park Ave., to VMC TRS 4 in exchange for the release of a $13.68 million mortgage. The deal resolves a foreclosure lawsuit a lender filed against HUSA LH VN in April 2023 over the hotel. According to the complaint, the loan matured Dec. 31, 2022 and the borrower was not able to pay.

April 09, 2024

The company sold 3382 and 3394 Bailey Ave. to SSA REO Assets 06 in a deed in lieu of foreclosure. GNZR bought the roughly 25,000-square-foot building in July 2022 for $1.7 million, and it's anchored by 10 apartments.

April 02, 2024

The company completed a financial and corporate restructuring, marking the company's emergence from bankruptcy. PREIT filed for Ch. 11 bankruptcy protection in Dec. 2023 after the company's creditors agreeing to a "prepackaged" bankruptcy. PREIT reduced its total debt by roughly $835 million through a reorganization plan and commitments of $130 million of new money debtor-in-possession financing and exit revolver financing from a group of investors. The Pa.-based company owns and operates malls in N.J., Pa., Ma., Va., Mi., N.C. and S.C., in addition to properties in the multifamily, hotel and healthcare sectors.

March 28, 2024

Land in south Raleigh owned by David Phillips, owner of development company Phillips Enterprises, that was supposed to be part of a new subdivision has been foreclosed on and sold in a public auction. The highest bidder at the auction was 3513 Garner LLC, paying about $2.7 million. It is unclear who owns the LLC as the registration only shows a registered agent, not members. Phillips bought the land in June 2021 for $2.85 million from Prestige Construction and Land Development. Prestige filed a rezoning request for the property, along with two adjacent ones, in 2020. The rezoning was granted, adding a condition to preserve 20% as open space. After Phillips acquired it, a subdivision plan was filed by Tricor in Oct. 2022 for a 230-lot subdivision on the three parcels. City of Raleigh planning staff said the subdivision plan was withdrawn and there are no current plans or permits listed for the property.

March 25, 2024

LoanCore Capital, which extended a short-term mortgage to the apartment's owner in 2022, was the highest bidder at a foreclosure sale. Liquid Capital bought the 212-unit tower, called The Optimist Lofts, in 2022 but failed to pay debt payments starting in mid-2024, forcing LoanCore to push the property to foreclose. The Optimist Lofts was built in 2008.

March 25, 2024

Flushing Center Crossing picked up 34-20 Linden Place from Linden Center, a limited liability company. The 67,197-square-foot property, which has an alternative address of 33-37 Farrington St., is currently leased. 34-20 Linden Place's previous owner defaulted on a $16 million loan and filed for bankruptcy in May 2023.

March 19, 2024

Aventura MOB filed a foreclosure lawsuit against Aventura Eco-Offices Property Owner and loan guarantor Marlon Gomez concerning the 1.63-acre site at 21291 N.E. 28th Ave. The site was approved for a seven-story, 263,371-square-foot medical office building, which has been under construction since early 2023. According to the lawsuit, the borrower defaulted on the loan by missing payments starting in July 2023, and owes $15 million in principal, plus interest and fees. Gomez says he plans to repay the loan on Aventura Eco-Offices, but says he's faced hurdles obtaining construction financing to complete the project.

March 19, 2024

Stormfield SVP I filed a foreclosure lawsuit against Oasis Hospitality Partners II LLC and loan guarantor Mark McClure. The lawsuit concerns the 3,196-square-foot property at 1545 Meridian Ave. called Villa Merida, a bed-and-breakfast. Stormfield provided a $3.5 million mortgage to Oasis Hospitality Partners II in January 2023, but the borrower defaulted by failing to repay the loan at maturity on Jan. 15, 2024. The suit hopes to collect the owing mortgage and interest.

February 29, 2024

Formalized with a foreclosure notice, the company said it is exiting from a 50-year-old Georgetown office building its predecessor acquired ten years ago with CBRE Global Investment Partners as it looks to dispatch of "non-core assets." The Foundry, 1055 Thomas Jefferson St. NW, is to be auctioned during a foreclosure sale scheduled for Apr. 11. The notice lists $58 million is still owed to its lender, JPMorgan, who provided that portion of the $79.5 million needed to buy The Foundry in 2014.

February 21, 2024

The creditor acquired 41-60 Main St. in Flushing, Queens from Flushing Landmark Realty, which went bankrupt in 2020. The sale is part of Flushing's efforts to restructure its balance sheet. The property is a 100,500-square-foot commercial building.