In the face of mounting overdue rent, the parent company responsible for a popular entertainment destination has pulled the plug on the center, according to local business news. The Chapter 7 bankruptcy filing came on the heels of a judicial decree that the company was no longer able to pay its debts -- most notably the rent owed the property owner. South Carolina residents can understand that such mitigating circumstances sometimes call for more involved measures to resolve.
The struggles for this entertainment center -- which also hosted several bars and restaurants -- began in the last few years when the parent company filed for Chapter 11 bankruptcy. Since then, property owners have complained of late and overdue rent payments as well as a failure to upkeep the property concurrent to the rental agreement. The matter was introduced to a local court where the presiding court justice placed the company in Chapter 7.
The business assets are now in the hands of a court-appointed trustee, with whom the owner of the establishment is reportedly cooperating. The assets of the company have been frozen, pending an assessment of their worth, but the establishment has been permitted to remain open to accommodate events planned prior to the filing. There is no word as to when the company will officially cease operation.
Chapter 7 bankruptcy is a valuable tool for business owners encountering challenging financial situations, as many South Carolina owners can attest. Liquidating company assets to pay down creditors means the owners are spared the financial burden of those debts on a personal financial level. It is hoped that a business owner can then return to the market on stronger fiscal footing.
Source: pe.com, "Bowling alley going bankrupt", Michael J. Williams, April 25, 2014