Aurora's Roundhouse files for bankruptcy

America's Historic Roundhouse in Aurora this week filed Chapter 11 bankruptcy in U.S. Bankruptcy Court, but owner Scott Ascher says brides with wedding receptions planned at the dining and entertainment complex don't have to worry about the business closing.

The Roundhouse plans to continue normal business operations despite the bankruptcy filing, Ascher said.

He said he plans to sell the building and use the revenue to pay debts and back taxes he owes to bodies including the city of Aurora and the state.

“We thought about it, worked on it and determined it's better to go Chapter 11,” Ascher said. “We're still operating. Everything is still the same, nothing's changing. We're just selling the building to pay off some debt.”

Ascher said Durty Nellie's, a Palatine pub, restaurant and music venue, signed paperwork indicating its intent to purchase the Roundhouse building, and was still on board with the plan as recently as Saturday.

A representative of Durty Nellie's did not immediately return a phone call seeking comment Wednesday.

Stalling the planned sale is a stipulation of the building's mortgage, which would not allow Durty Nellie's to purchase the building unless the business was in Chapter 11 bankruptcy, Ascher said.

The Roundhouse's mortgage company, Siena Capital of Chicago, declined to comment.

Ascher said he expects the Chapter 11 bankruptcy filing to be processed within 30 days. Then, he said, the sale could take place and his business could begin paying the taxes it owes.

But with the Roundhouse in bankruptcy, Bill Wiet, development director for the city of Aurora, said Ascher no longer has control over significant decisions related to his business and the property.

Instead, Wiet said, the court will develop a reorganization plan to determine which debtors get paid first and what will happen to the property. City officials have engaged in discussions with a few developers and are hoping for new management at the location, he added.

“It's always been first and foremost that the city's goal was to work on a smooth transition to a high-quality operator,” Wiet said.

Since opening in 1996, the Roundhouse has been the subject of several legal battles and now owes the city more than $121,000 in a combination of parking and inspection fees and taxes on liquor, food and beverages, according to Wiet.

Ascher said trouble meeting financial obligations began in 2008 when sales dropped to $5.38 million from $6.3 million in 2007. Sales have remained low, coming in at $4 million in 2010, which prevented the business from catching up on payments, he said.But Ascher remains optimistic his business will be able to reorganize according to his vision and stay in Aurora.

#8220;I really want people to understand what's going on here,#8221; Ascher said. #8220;They don't have to be nervous about their weddings and future events. I've been here 16 years, I'm staying here.#8221;