One of Chicago's most famous hotels has filed for Chapter 11 bankruptcy reorganization.
The Chicago Tribune reports that ALT Hotel LLC, the owner of the Allerton Hotel, cited ‘potential litigation with Wells Fargo, Diamond Rock Hospitality and Diamond Rock Allerton Owner LLC’ as part of its bankruptcy filing. ALT Hotel LLC said in its filing that the business has 100 to 199 creditors, with assets of $100 million to $500 million, and liabilities of $50 million to $100 million.
A lawyer representing the hotel said the filing took place to ‘protect against hostile predatory actions by one secured creditor that could have gravely adverse consequences for the hotel, its employees, other creditors and vendors.’
The 25-story, 443-room Allerton Hotel has been a fixture of the Chicago lodging industry since 1924. The hotel was celebrated for its Tip Top Tap lounge, which served a signature cocktail called the Moscow mule, and as the one-time studio for the long-running radio talk show ‘Don McNeil's Breakfast Club.’
(Photograph courtesy of the Allerton Hotel)
