On September 25, 2013 it was made public that the Lafayette Yard Hotel and Conference Center in Trenton, NJ filed for Chapter 11 Bankruptcy. The decision to file was made at the end of September when a projection showed that the hotel would run an $880,000 operating deficit by the end of 2013. The Lafayette Yard Hotel and Conference Center has 197 rooms and serves as Trenton’s only hotel. The hotel was opened in 2001 and has struggled ever since to turn a profit.
At the time of filing, the hotel reportedly owed money to 181 creditors, amounting to over $25 million in long term debt. Additionally, the hotel has been struggling to create enough cash flow to meet its weekly payroll obligations, which are between $38,000 and $42,000.
Since filing for bankruptcy, the Lafayette Yard Hotel and Conference Center has obtained a $2 million loan from Racebrook Financial, which will allow the hotel to continue to operate throughout the bankruptcy process.
On October 15, 2013 Lafayette Yard Hotel and Conference Center received court approval to sell the hotel and substantially all of its assets at public auction. The auction is tentatively scheduled for November 25, 2013. The Lafayette Yard Hotel and Conference Center received a bid of $5.5 million for the hotel, which will act as a starting bid for the auction.