Steeltown club seeks protection from creditors

August 16, 1991|By Eric Siegel D

Steeltown, the Dundalk entertainment complex that opened for business May 1, has filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.

The filing will not affect the operation of the club at 2401 North Point Blvd., which includes a sports bar, restaurant and concert stage used by national and local acts, general manager Larry Milburn said yesterday.

"Because of the closing of some of the clubs here in Baltimore [such as the Fishmarket and Blues Alley], people could look at this filing and say, 'They're going to close, too.' That's not the case. This is strictly a reorganization of some debt," Mr. Milburn said.

He said that the complex has been attracting about 11,000 customers a week, about 4,000 fewer than projected, but he added that he expected business to pick up next month.

Steeltown's owners ran into $350,000 in cost overruns as they expanded and renovated the former Whitehouse Tavern, and they also were hurt by a six-week delay in opening the kitchen, he said.

In its filing last Friday, Steeltown listed assets of $437,000 and liabilities of $1.1 million. Among the liabilities were $114,000 owed in federal and state withholding, sales, amusement and unemployment taxes.

Steeltown is owned by Hickory Investment Corp., headed by William J. Peterson of Bel Air, according to court documents.

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