• Giordano’s pizza chain owners ordered out of Chicago headquarters

    A federal bankruptcy court recently ordered the takeover of the famous Chicago Giordano’s pizza chain.   However, the company’s president and his family member refused to leave the Chicago headquarters.  The company filed bankruptcy in February.

    According to court filings, the family would not let on the premise the appointed trustee handling the Chapter 11 takeover and even threatened to call the sheriff’s office.  The trustee appealed to the court for an order to force the family out permanently.  The turn of events is not uncommon says one Chicago bankruptcy lawyer .

    According to reports, the owners of the pizzeria, Giordano’s Enterprises Inc., had missed important court deadlines in the case, had not paid court fees, and had even fired its attorney.

    The company has remained quiet about the cause of bankruptcy and how it planned to emerge, if at all, from its financial troubles.  The trustee also claims to have very little knowledge about the financial workings of the company.

    According to the Chicago bankruptcy attorney , the process will likely become extremely tense if the company and its operators continue acting hostile towards the trustee.  The last thing the company wants is to have the court continuously issuing orders directly aimed at the operators.

  • Huge drop in foreclosed home prices reported in Chicago and many cities nationwide

    According to the S&P and Case-Shiller index of property values,  at least 20 cities’ home prices  fell 3.3 percent in just a year-the biggest single year drop since November 2009. Year-over-year statistics provides the best indications of trends in pricing.

    Many bankruptcy and foreclosure attorneys predict that prices will keep falling as the number of foreclosed homes grows. Most economists agree.

    “Housing will continue to lag the recovery until foreclosures abate,” said Sal Guatieri, an economist at BMO Capital Markets Inc. in Toronto. “The negative wealth effect from home price declines seems to be more than offset by stock market gains [and] the economy is moving in the right direction.”

    Phoenix led the group of 20 cities with an 8.4 percent slump followed by an 8.3 percent in Minneapolis. Chicago, Atlanta, Las Vegas, New York, and Miami showed the lowest prices since 2006.  In Chicago, along with many of the other large cities, bankruptcy attorneys have seen a large increase in business due to the dramatic rise of foreclosure rates.

    Treasury Secretary Timothy F. Geithner believes it is “going to take a long time” to fix the housing market.  Continuing, Geithner stressed that “we’re just at the beginning of trying to figure out how to fix that mess.” Most bankruptcy lawyers agree with the Secretary’s advisement .