Trolley's Files for Bankruptcy
Trolley's LLC, the company that owns the Trolley's Downtown Bar & Grille locations in Springfield and Overland Park, Kansas, is expected to announce that it has filed for Chapter 11 bankruptcy protection. Details are few, but here's how we understand the situation:
- Last year, the KC-based bank that owned the loans for both Trolley's locations failed and was seized by the Federal Deposit Insurance Corporation.
- The loan was then resold by the FDIC to a non-banking-industry third party.
- Changes in the terms of the loan, instituted by the new noteholder, forced Trolley's last week to file for Chapter 11, which allows the company—owned by Aaron Buerge (yes yes, of The Bachelor fame)—the chance to reorganize and continue operations under current ownership and continue to pay its creditors. (Full disclosure: GO Magazine, with which Trolley's advertises, is one of those creditors, and first learned of the bankruptcy via a letter announcing the filing).
GO obtained a copy of the following press release, expected to be distributed today.
On 8/22/08, Columbian Bank in Overland Park, KS, failed and was taken over by the FDIC. Due to circumstances beyond Trolley’s control, our debt was sold to a group of non-banking investors. Trolley’s is pleased to be filing for protection from this investor group by reorganizing under federal laws designed to protect our interest and the interest of you, our customer! Trolley’s operations will continue with business as usual for all employees, customers, and suppliers.
Thanks for your continued patronage!
See you at Trolley’s,
Trolley’s Management Team
So what are you hearing? Trolley's does a good business in Springfield, and our friends in the publishing industry in KC tell us they are having similar success in Overland Park. Let us know what you're thinking in the comments.
Matt Lemmon, editor copyright GO Magazine, 2009