The Milwaukee Marriott Downtown hotel owes at least $45 million to creditors as the business seeks to restructure its debt.
Wisconsin & Milwaukee Hotel LLC, an affiliate of Milwaukee-based Jackson Street Holdings, which owns and operates the hotel, sought Chapter 11 bankruptcy protection Tuesday.
The 205-room hotel, located at 625 N. Milwaukee St., opened in 2013 and will remain open as its owner works to restructure its finances and operations.
In a preliminary filing in U.S. Bankruptcy Court, the owner lists assets and liabilities ranging from $10 million to $50 million.
Of the liabilities listed in the voluntary filing, the largest claims are $42.5 million to the Wisconsin Housing and Economic Development Authority, including $16.1 million that is unsecured.
Wisconsin & Milwaukee Hotel Funding LLC claims $2 million. The entity is an affiliate of Milwaukee-based FirstPathway Partners, a private equity firm that makes investments on behalf of people outside the U.S. who seek to become permanent residents through the EB-5 program.
In 2012, Wisconsin Housing and Economic Development Authority (WHEDA), a state-created agency that primarily helps finance housing, approved more than $40 million in Midwestern Disaster Area Bonds for the $50 million hotel project.
The hotel owner also owes nearly $550,000 to the city of Milwaukee.
The hotel also owed $129,000 to Marriott International and $60,000 to real estate services company JLL.
Other creditors include material and service providers. They include:
- Cintas's Menomonee Falls office claiming $4,902. Cintas is a uniform, cleaning supplies and first aid provider.
- US Foodservice Inc.'s Menomonee Falls office claiming $22,407. The company is a food supplier.
- Testa Produce Inc.'s Carol Stream, Illinois office claiming $12,622. The company is a produce wholesaler.
- CVENT's Philadelphia office claiming $10,524. CVENT provides event and meeting planning software.
- Milwaukee-based Milwaukee World Festival claiming $10,000.
- Maryland-based Towne Park, LLC claiming $9,000.
- Fortune Fish Company's Chicago office claiming $8,721. Fortune Fish is a food provider.
- St. Louis-based Courtesy Products Inc. claiming $5,663. Courtesy Products provides in-room products like coffee and hairdryers.
- Guest Tek Interactive's Minnesota office claiming $3,947. The company is a broadband services provider.
- Milwaukee-based mechanical contractor J.M. Brennan Inc. claiming $3,052.
- Vistar Corporation's Hacienda Heights, California office claiming $2,576. The company provides snacks and candy.
- Deluxe Branded Marketing's Cincinnati office claiming $2,281. The company performs marketing services, as well as room keycards.
- Milwaukee-based Wolf's Dry Cleaners claiming $2,280.
Richman & Richman of Madison was hired as a Chapter 11 legal adviser for the hotel.
Other debts listed include a $383,000 Paycheck Protection Program (PPP) loan from Town Bank, a federal funding program implemented in response to the economic impact of the Covid-19 pandemic.
