Embassy Suites by Hilton is up for sale after the company that owns it, Le Centre on Fourth, filed a petition for reorganization under Chapter 11 bankruptcy in a Florida court, potentially affecting Louisville jobs in the area.
The bankruptcy led to the company putting the 304-room hotel up for sale in order to help stakeholders recover some of their investment using the money gained from the hotel’s purchase by another company.
The hotel had been embroiled in legal trouble as far back as last year when a prominent investor, Eric Bachelor, sued to have The Al J. Schneider Co. removed as the hotel manager. The report states that Bachelor said “an imminent and ruinous foreclosure” was on the horizon for the hotel, and claimed that The Al J. Schneider Co. steered business toward its other hotel properties. The company denied the allegations. Despite the court battle, The Al J. Schneider Co. continues to operate as the hotel manager.
In a statement emailed to Insider Louisville, the company called the Embassy Suites “remarkably profitable, highly rated, and well-managed by the Al J. Schneider Company in a Four-Star manner.”
“The Hotel is staffed with hundreds of hard-working Louisvillians, is well capitalized, and in no need of restructuring,” read the statement. “AJS is committed to its substantial investment in the Le Centre on Fourth project, which far exceeds the contributions of Mr. Bachelor. The bankruptcy petition was filed without the knowledge or consent of AJS, and is merely a symptom of an ongoing partnership dispute with Mr. Bachelor, which will not interfere with day-to-day operations. AJS will continue to aggressively pursue its rights, and to protect the jobs of its valued employees.”
The company chose to file bankruptcy in Fort Lauderdale, Florida. The filing will not affect hotel operations.
If the company is unable to find a buyer for the hotel, however, the subsequent closing could affect dozens of workers and Louisville jobs.
“UPDATED: Embassy Suites owner files Chapter 11 bankruptcy,” Insider Louisville, November 13, 2017.