ANCHORAGE (KTUU) - After repeat requests and legal action from lenders, the company owning multiple bars in downtown Anchorage, including Humpy's, has entered Chapter 11 bankruptcy protection.
According to court documents, Hook Line and Sinker Inc., owner of the properties, entered into Chapter 11 following a push from four groups who petitioned the company to file for bankruptcy in December of last year.
Hook Line and Sinker Inc. owns Humpy's Great Alaskan Alehouse, Flattop Pizza, and Bootleggers 8 Star Saloon. A manager with the bars previously told KTUU that it was "working internally to resolve these issues and wish the public to know that we are and plan on remaining open." This goal may still be possible for the owners, as Chapter 11 will allow restructuring to occur at the same time as employees are paid.
However, owners also said they were looking to a "non-judicial resolution," though that time appears to be over. If the company is not able to restructure, it may be bumped back to a Chapter 7 bankruptcy by the court.
The origin of the company's financial woes was credited, by the company, to the ambitious Williwaw project, which transformed the corner of 6th Avenue and F Street in 2015. Williwaw, which is owned by the same people, drew massive debts, that the owners were unable to repay.
Due to the debt incurred by the Williwaw project, lenders filed to force ownership to file for a Chapter 7 bankruptcy. The case was primarily a lawsuit on behalf of Salamatof Native Association Inc., another lender, claimed on Feb. 3 that the Humpy's owners owe it $1.9 million.
In addition to Salmatof, Collin Szymanski, Carl Brady Jr. and Arctic Refrigeration & AC Inc., claimed they are owed hundreds of thousands of dollars each for unpaid involvement with Williwaw.