McMenamy’s in Niles files for bankruptcy

Staff report

niles

McMenamy’s Restaurant and Banquet Center has filed for Chapter 7 bankruptcy protection.

The filing was made Tuesday in U.S. Bankruptcy Court Northern District of Ohio by Kelly Green’s Investment Inc., the company that owns and operates McMenamy’s.

Chapter 7 bankruptcy involves the selling of the debtor’s nonexempt assets and uses the proceeds to pay those who are owed. The bankruptcy laws allow the debtor to keep certain exempt property, but remaining assets are liquidated.

The company lists no assets in its filing and $1.77 million in liabilities.

Kelly Green’s owes more than $56,000 to several government agencies, including the city of Niles, Internal Revenue Service, Ohio Attorney General’s Office and the Ohio Department of Taxation. The largest debt is the $1.64 million the company owes to U.S. Bank National Association, a trustee of Lehman Brothers.

The company was sued in February of this year by the U.S. Department of Labor for failing to pay minimum/overtime wages to employees, failure to maintain adequate records and child labor law violations, according to federal court records.

Kelly Green’s and its subsidiaries also have several other court cases against them in local, state and federal courts.

According to the bankruptcy filing Kelly Green’s lost $125,099 in 2009 and despite a larger gross in 2010 lost $267,114 in that year. Figures for 2011 are not available.

The attorney for Kelly Green’s in the bankruptcy, Richard Zellers of Canfield, was not available for comment. The restaurant remains open.