Latest news with #Chapter11Bankruptcy
Yahoo
11-06-2025
- Business
- Yahoo
Former BK Racing owner pleads guilty to failure to pay payroll taxes in latest legal troubles
CHARLOTTE, N.C. (QUEEN CITY NEWS) – Former NASCAR team owner Ron Devine pleaded guilty Wednesday to failure to pay payroll taxes, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. According to the plea documents and other court records, Devine, 68, was the owner and President of BK Racing, LLC (BK Racing), which operated a NASCAR team and owned two charters. As the owner, Devine was discovered to have exercised control over the team's financial affairs, including authorizing the filing and payment of its trust fund taxes, commonly referred to as payroll taxes. Federal judges rule in favor of NASCAR in lawsuit filed by Jordan-owned 23XI and Front Row Payroll taxes are withheld from employees' gross pay for income tax and to fund Social Security and Medicare. Employers are also required to make contributions to trust fund taxes matching the amounts withheld from their employees' pay, and to file and pay quarterly taxes. Court records indicate that beginning in 2012, Devine caused BK Racing to fail to account for and pay hundreds of thousands of dollars in payroll taxes. Court documents show that, between 2012 and 2017, instead of using the funds held in trust to pay for payroll taxes due, Devine allegedly transferred more than $2 million to other businesses and entities that he owned and controlled and used some of the funds to pay for BK Racing's expenses. Devine, who lives in northern Virginia, was released on bond following his guilty plea. The charge of failure to truthfully account for and pay over trust fund taxes carries a maximum penalty of five years in prison and a $250,000 fine. A sentencing date has not been set. This is just the latest in Devine's financial troubles that were taken court. In April, a federal judge approved a lawsuit from Front Row Motorsports after buying a charter for BK Racing that came with more than $9 million in debt. After Front Row settled with the bank for $2.1 million, the team asked Devine and business partner Michael DiSeveria to pay the balance, plus interest. They refused at first, thus creating the legal matter. In January, a federal appeals court upheld an order for Devine and his BK Racing associates to pay a $31 million fine, after being accused of attempting to obstruct and delay the team's bankruptcy proceedings. BK Racing last competed in the Cup Series in 2018, when they filed for Chapter 11 Bankruptcy. Assistant U.S. Attorneys Caryn Finley and Daniel Ryan of the Office in Charlotte are prosecuting the payroll tax case. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
20-05-2025
- Business
- Yahoo
Possible Rite Aid closures impact customers
ELMIRA, N.Y. (WETM) –Rite Aid filed for bankruptcy again, meaning that all of its stores must close or be bought by another company. According to its website, Rite Aid has over twelve hundred stores in 15 states. In our area, there are locations in Horseheads on Grand Central Avenue and Westinghouse Road, as well as in Elmira on Pennsylvania Avenue and Mt. Zoar Street. This is the second time Rite Aid has filed for Chapter 11 Bankruptcy, with the first being in October 2023. There are no official closing signs at any of the locations near Elmira. However, a sign says that gift cards and exchanges will no longer be honored after June 5th. Many customers are worried they will have to travel further out to get their prescriptions. 'It's very inconvenient because then we got to go out another way to go to another Rite Aid and we don't got time for that,' said one customer. If the Rite Aid locations aren't bought out, there are other local options, like Gerould's Pharmacy. Frank Steed, a pharmacist at Gerould's, says mail order delivery is also one of those options. 'With the closures, it brings people in the community to have to find other providers that they need to get medication from. Those providers can be in a local pharmacy, they can go through a mail order program, or different types of sources. Locally, most of the pharmacies are prepared to help and be there for whatever needs that they have,' said Steed. As of right now, the location of Pennsylvania is the only one that is being bought out, according to a representative at that location. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Associated Press
03-05-2025
- Business
- Associated Press
Resolution Financial Advisors Introduces a Strategic Alternative to Bankruptcy for End-of-Life Businesses
05/02/2025, Los Angeles, California // PRODIGY: Feature Story // Resolution Financial Advisors, LLC, has launched a service that helps distressed companies navigate the final stages of their business lifecycle with integrity, efficiency, and clarity. Offering alternatives to traditional bankruptcy processes, it delivers a hands-on approach to corporate wind-downs. The boutique financial advisory has a mission to set a new standard in distressed asset resolution. Based in Los Angeles but operating nationwide, the firm serves boards of directors, executives, investors, and lenders confronting the complex realities of failing businesses. Resolution focuses on end-of-life cycle companies, guiding them through structured exits, insolvency alternatives, and orderly asset dispositions. 'Our service aligns with our mission to deliver thoughtful, strategic resolution to companies at their most vulnerable moment,' says David Johnson, co-founder and principal of Resolution Financial Advisors. 'There's often a better way to close a business than defaulting to bankruptcy. We want to help clients understand their options and choose a path that protects value, relationships, and reputations.' Resolution's offering exemplifies a nuanced understanding of the limitations and costs of traditional bankruptcy proceedings under US federal law. For instance, Chapter 11 Bankruptcy allows companies to continue operations while restructuring their debts. 'It can offer benefits, but it can also be expensive,' says Johnson. 'It's also only ideal when there's a realistic pathway to recovery, either through an operational turnaround or the sale of assets to a buyer who prefers the bankruptcy route.' On the other hand, Chapter 7 uses a liquidation process where the business ceases operations, and a court-appointed trustee takes over the sale of assets. 'The problem with this is that trustees are usually legal professionals without the business experience to monetize esoteric assets or operate businesses in wind-down mode,' Johnson states. Resolution Financial Advisors recognizes these gaps. Hence, it developed a more strategic and business-savvy alternative. Its approach emphasizes three non-bankruptcy mechanisms: foreclosure assistance, receiverships, and a process known as an Assignment for the Benefit of Creditors (ABC). ABC is one of Resolution's comprehensive offerings in prioritizing value preservation, legal compliance, and stakeholder dignity. ABC enables a company to appoint a private fiduciary as a trustee to liquidate assets and manage the wind-down on behalf of creditors and shareholders, allowing for a more customized and controlled exit. The trustee's dual role involves monetizing the company's remaining assets, including intellectual property, equipment, and receivables. It also entails executing the administrative shutdown, including filing taxes, managing employee benefits and retirement, and resolving environmental or legal obligations. Adaptability is ABC's primary advantage. Resolution states that every case is unique. However, most of the work, such as asset sales, creditor notifications, and facility closures, can be completed within 180 days. Resolution safeguards company records and compliance matters long-term, supporting stakeholders for years after the initial engagement. This continuity and attention to detail ensure the company's closure is thorough, respectful, and legally sound. Resolution acknowledges the depth of its role in the process. 'We're brought in after the hard decisions have been made,' says Johnson. 'It's an emotional time for founders, boards, and employees, so we come in to execute with compassion, transparency, and professionalism.' Indeed, Resolution helps ease the pain and honor the effort that has gone into building the business. Resolution caters to various clients, from traditional retailers and industrial firms to high-growth venture-backed startups in Silicon Valley. The firm's approach remains the same regardless of size or sector. It helps stabilize the situation, preserve as much value as possible, and ensure an orderly exit that meets the legal and ethical expectations of all involved. For those unsure whether an ABC or other alternative is appropriate, Johnson offers advice: 'Our mantra at Resolution is 'know your options.' We do a lot of upfront consultations without charge. Within a few days, we can assess your situation and present a list of viable next steps.' Resolution's educational approach is crucial as more businesses face tightening capital markets, lender fatigue, and unsustainable burn rates. The company is active on LinkedIn, where it regularly publishes content that demystifies the end-of-life corporate stage. Media Contact Name: David Johnson Email: [email protected] There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. Moreover, nothing contained in this should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security, or related transaction is appropriate for you based on your investment objectives, financial circumstances, and risk tolerance. Consult your business advisor, attorney, or tax advisor regarding your specific business, legal, or tax situation.
Miami Herald
14-04-2025
- Business
- Miami Herald
Popular brewery files for bankruptcy
In the immortal words of Homer Simpson, "Ah, good ol' trustworthy beer. My love for you will never die." While beer is a staple that many fans of the brew can't imagine their lives without, there's no denying that - at least in certain sectors - it's a little less popular than it used to be. Don't miss the move: Subscribe to TheStreet's free daily newsletter That's not about beer itself, but more about a trend of consumers seeking out non-alcoholic options. The popularity of non-alcoholic beer and mocktails has soared in the past decade, and it's still climbing. It was valued at USD $1.2 billion in 2023 and is expected to grow at a CAGR of 7.4% by 2030. Simply put, people want options that are better for their health. Related: Iconic beer brand closes another beloved craft brewery Another thing keeping people from choosing beer is the blossoming cannabis drink market (think low-dose THC, often blended with CBD). In 2023, the market size for these new beverages was valued at USD $1.16 billion - and it's just getting started. The market is also projected to grow at a CAGR of 19.2 percent to reach $3.8 billion by 2030, according to a Grand View Research study. Now a popular brewery has announced it will be closing its doors, and any mix of these factors could be a part of the reason. Image source: Getty Images Cotton House, a beloved family-owned craft brewery located in Cary, North Carolina, made an announcement on its Facebook page on April 9 that it will file for bankruptcy, mentioning a partnership it attempted to forge that did not go as planned. "The partnership we hoped would flourish took a different direction, and over the past two years, we have faced significant financial strains as a result," the post reads. "Despite these challenges, we have remained committed to our mission, and it is this resilience that has led us to our next chapter. Today, we announce that Cotton House Craft Brewers will undergo a strategic restructuring by filing for Chapter 11 Bankruptcy. While our business model has evolved, our dedication to the community and to providing exceptional craft beer remains unwavering. We are still here, we are still beer, we are Cary!" Related: Why your beer is about to get more expensive While loyal patrons expressed their worries in the comments about the future of the brewery, Cotton House reassured them, saying, "We aren't going anywhere!" While the craft beer market went through a hot streak starting in the '90s that exploded into the 2000s, it's been struggling a bit lately as consumers consider new options. U.S. beer production and imports were down 5% in 2023, according to the National Brewers Association, while craft brewer volume sales declined by 1%. "Craft has been going through a painful period of rationalization as demand growth has slowed and retailers and distributors look to simplify their offerings or add options for flavor and variety outside of the craft category," said Bart Watson, vice president of strategy and membership, Brewers Association. "That said, breweries have reacted to these changes by focusing on distribution, continuing to innovate in their taprooms and brewpubs, creating groups and partnerships, and offering a wider range of beverages in their portfolios." Here's hoping that Cotton House's restructuring plan can create new opportunities for it to thrive, as it's obvious that loyal fans would be heartbroken to see it close its doors. Related: Popular light beer collaborates with unexpected partner The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
02-04-2025
- Business
- Yahoo
Downtown Express YMCA to close, YMCA looking for new location
HUNTSVILLE, Ala. (WHNT) — The Heart of the Valley YMCA is looking for a new location for the Downtown Express YMCA. It announced last week, that the lease on the space inside the building owned by Huntsville Utilities is expiring on August 31st. News 19 reached out to the Heart of the Valley YMCA for more details on the closure and search for a new space. LISTEN: Rep. Dale Strong holds telephone town hall 'They need the space back that we've been using for the past 15-20 years,' said Interim CEO Jeff Collen. Collen said keeping the location downtown is a priority. 'We think it's really, really important that the YMCA remain downtown,' he said. Collen told News 19 that the Y is working with downtown partners to find a new location that is just as convenient. 📲 to stay updated on the go. 📧 to have news sent to your inbox. 'We'll find another location that will serve the downtown community as well, if not better, than we've ever been able to,' Collen said. In August of 2024, the Heart of the Valley YMCA filed for Chapter 11 Bankruptcy. It cited financial issues due to 'mortgage debt' from the Hogan YMCA in Madison. As a result, the YMCA sold Camp Cha-La-Kee in Guntersville. However, Collen told News 19 that the decision to move the Downtown YMCA is purely due to the expiration of the building lease and that it has nothing to do with financial issues. 'It has absolutely nothing to do with it,' Collen told News 19. During the month of March, Collen told News 19 that there were more than 4,300 visits to the Downtown Y. He said once the Y finds a new location to relocate to, it could be 'very, very positive' for membership. At this time, he said they are still looking for the perfect location. News 19 will keep you updated on when a new location is selected. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
