• Patricia Kluge Blows Through $1 billion and Files for Bankruptcy

    Patricia Kluge, divorcee’, ex-belly dancer and owner of a checkered past, has filed for chapter 7 bankruptcy after spending her entire divorce settlement. She left her marriage with a settlement that included assets, cash and real estate valued at $1 billion. The amount set the record for the largest divorce settlement until Rupert Murdoch’s divorce.

    After her third marriage in 2001 to Bill Moses, she invested $27 million to develop a winery in Virginia. Kluge labeled wines quickly met with critical acclaim and would go on to be poured at many an upscale event.

    On the heels of the initial success of the winery, Patricia and her husband borrowed $68 million to upgrade and expand the winery. The operation is located near the Blue Ridge Mountains in Charlottesville, Virginia. One part of the expansion plans included building multi-million dollar homes.

    The recession in 2008 halted the expansion, and Kluge found herself in financial trouble. She started to sell off her collection of objet’ d’arts, comprised of many valuable items. A two-day auction at Sotheby’s did not bring in enough money to cover the $69 million owed to the bank.

    Patricia Kluge has disclosed the amount of debt to be between $10 million and $50 million, with assets valued between $1 million to $10 million.

    Benjamin Brand Services – Chicago bankruptcy lawyer

  • Marie Callender and Perkins Restaurant Chain File Chapter 11 Bankruptcy

    The owner of Perkins and Marie Callender restaurant chains filed for bankruptcy on June 13, 2011. Court documents show that the company plans to shutter 65 of its 600 locations and eliminate 2,500 jobs.

    The bankruptcy is wiping out the investment of private equity firm Castle Harlan. They acquired the Perkins chain in 2005 for $245 million. Castle Harlan added the Marie Callender Restaurant and Bakery chain in 2006 for $140 million.

    The restaurant chain is the latest food business to fall in a sluggish economy and soaring food prices. Perkins and MarieCallender Inc.’s filing follows on the heels of a bankruptcy filed by chicken producer Allen Family Foods.

    Company President Joseph Trungale said in court documents that the company was hit hard by a weak economy. A sharp decline in restaurant sales in the Midwest, Florida and California pushed the company into filing.

    The company said that high unemployment and foreclosure rates in Florida and California led to a decrease in discretionary income for many historically loyal customer, resulting in a drop in customer traffic.

    Total assets for the company listed in the petition are $290 million with liabilities of $440.8 million. Eleven affiliates of Perkins and Marie Callender’s, Inc. are included in the bankruptcy filing.

    If you are seeking bankruptcy information , contact a Chicago bankruptcy attorney for insight into how the process works.