The Springfield, Mo.-based John Q. Hammons hotel chain has filed for bankruptcy protection from its creditors but says publicly it is “financially stable.”
Hammons owns 35 hotels, including the Residence Inn Kansas City Airport, and has been embroiled in a courtroom battle over their future. Several Hammons entities filed Sunday for reorganization in federal bankruptcy court in Kansas City, Kan.
“The financial restructuring will enable the companies and their advisers to better navigate the litigious environment that has encumbered the family of companies the past several years,” a statement from John Q. Hammons Hotels & Resorts said Monday.
Executives held a news conference Monday in Springfield making similar statements. According to the Springfield News-Leader, the bankruptcy filing will put at least a temporary stay on court cases and specifically one in Delaware in which a trial is set to begin next month.
The Hammons news release and the executives said the bankruptcy actions should not affect customers.
The release said a restructuring under bankruptcy court protection would “let us be there for our creditors, vendors, employees, guests and members of the community who benefit from the continued generosity of the legendary hotelier.”
Its reference was to John Q. Hammons, the chain’s founder, who died in 2013.
The News-Leader’s report said the central controversy stems from a 2005 agreement involving the sale of Hammons’ properties and disputed claims surrounding the execution of the agreement.
The hotel company’s website links to another specifically set up to provide access to the bankruptcy filings. The site shows the lead filing was by John Q. Hammons Fall 2006 LLC, and it listed 71 other related entities. The main entity’s filing shows a range of assets and liabilities between $100 million and $500 million rather than specific totals.
Among the other entities that filed for bankruptcy were JQH-Kansas City Development LLC, and its filing shows it owns the Residence Inn near Kansas City International Airport. The filing showed it took in $5 million in revenue last year, up slightly from $4.99 million in 2014. Its revenues through the first five months of this year were nearly $2.13 million.
KC Residence Catering Co. Inc. also filed a bankruptcy petition. It provides catering services to the Residence Inn Kansas City Airport. Its filing did not provide revenue figures.