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Updated: 6:36 PM Mar 5, 2010
UPDATE: Cliffbreakers Files For Bankruptcy
Owner of Cliffbreakers resort and Lexington Hotel in Rockford announces it's filing for bankruptcy protection.
Posted: 12:29 PM Mar 5, 2010 |
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9 Comments 
Cliffbreakers Riverside Resort is more than $10 million dollars in debt, but owners Michael Ellis and Victor Mattison say they have a plan to pull the west side hotel out of the hole.
Filing for Chapter 11 bankruptcy won't change most day to day operations. The Riverside Resort is keeping all of its staff and continuing to book events. Cliffbreakers has worked out a deal with their banks to reduce their total debt. This will free up money to pay other debts and continue full-time operations. Owners say chapter 11 was nearly impossible to avoid, with hotel revenues in Winnebago County dropping 14 of the last 15 months.
"We would continue to struggle, the economy is not going to instantly turn around and right now in the hotel industry it doesn't show any signs of turning around. So that said, we took this step so that we could firmly establish ourselves on a good foundation." said owner Michael Ellis.
CLIFFBREAKER RIVERSIDE RESORT, LLC, THE OWNER OF BOTH CLIFFBREAKERS AND LEXINTON HOTEL AT CLIFFBREAKERS ANNOUNCED TODAY IT HAS FILED FOR REORGANIZATION UNDER CHAPTER 11 BANKRUPTCY.
Their extra cash will be used to pay off nearly $600,000 in taxes owed to the IRS and the Illinois Department of Revenue. Owners expect to be out of Chapter 11 protection in 3 to 4 months.
The future is looking a bit brighter for the Riverside Resort. Owners say their year-to-year bookings are already up about 50% and they're hoping to increase that number with a weekend bridal show.
Latest Comments
We've been very happy with Cliffbreakers. Things may be tough on the restaurant and hotel business in general and that's what I think this is all about. The menu has changed in the past months (Barbara, you should check it out if you've not been lately). It's a more casual menu. My family has been several times and really liked it. We're not going to change our frequency of visiting and hope them the best of success in working through this tough economy.
We're lucky to have an employer on the west side that is willing to be so aggressive in retaining jobs. Many of us drive GM and Chrysler cars, both went through the same reorganization. My wife and I were there last night and it was packed. We asked one of the employees about this and she was VERY positive. The place was full of activity and energy. Looks like they've made lots of nice improvements to the building. We overheard two guests in the restaurant talking who were very complimentary of their rooms which they described as "brand new." There's nothing like Cliffbreakers in our community. What a loss it would be were it to close. I feel good about this development. We're going to a couple of weddings there this summer. We've been to 2-3 in the past and all have been beautiful. We'll go by again in the next few weeks and again report our findings on this site. Good Luck Cliffbreakers. Hang in there. It's tough all over.
It is not a surprise,given Mr. Ellis has been not taking care of venders, he wants a break, but stiffs the people who he owes. I don't think he could manage his way out of a paper bag. I hope the courts reject this filing and let him just go under. We have to sue just to get payed, but Ellis claims he is broke. Should have stayed in illinois and be a man to manage his properties.
