The landlord of four Caldor Department stores has filed for bankruptcy to prevent an auction of the properties that had been scheduled for today.
The bankruptcy petition filed last Friday automatically cancels the public auction.
The Four Centers Limited Partnership, which filed for Chapter 11 protection of the U.S. Bankruptcy Code, listed assets of $22 million and debts of $23 million.
Caldor leases four stores in Baltimore County from the partnership. The stores are in Golden Ring Mall, Westview Mall, Timonium Mall and Drumcastle Shopping Center.
The bankruptcy will not affect the operation of the stores, according to Alan Kuller, a senior vice president for Caldor. He also stressed that the retailer is current in its rent.
Maryland National Bank, the partnership's largest creditor, moved to foreclose on the properties Aug. 9.
Maryland National claims in documents filed in Baltimore County Circuit Court that the partnership has defaulted on a $15 million loan made in December 1985. The bank claims it has received payments on the principal totaling about $50,000 as of July 1, 1991, and that the partnership owes it $186,252 in unpaid interest. Original terms of the contract called for the partnership to have paid the loan by Dec. 20, 1990, according to court documents.
In its petition, Four Centers listed a $7.8 million debt to May Department Stores Inc. May sold Caldor's in 1989 to a group of investors that now operates the chain as Caldor Inc.
The partnership, which includes local businessmen, purchased the four properties from Adcor Realty Corp. in 1985. Adcor was a part of Associated Dry Goods, which was once a part of May.
The principals of Four Centers are Jerome B. Trout Jr., president of Trout, Segall & Doyle Management Co. Inc.; Mendel Friedman, president of Jolly Co. Inc.; Melvin M. Berger, formerly president of Yorkridge-Calvert Savings and Loan Association, which was taken over by federal regulators in 1989; and Marvin D. Rosenthal, former chairman of Yorkridge.