Trenton's city-owned hotel plans to file for Chapter 11 bankruptcy protection as it seeks relief from $30 million in debt.
The city's only hotel, the Lafayette Yard Hotel, which opened in 2002, recently lost its Marriott brand and is hoping to attract a buyer.
The hotel is overseen by the Lafayette Yard Community Development Corp. LYDC's Gregory Yard confirms to NBC10 that they would file for bankruptcy.
Board attorney Gregory Johnson tells the Times of Trenton that closing the hotel is not an acceptable option. Johnson says the hotel has heard from eight potential buyers and filing for bankruptcy will help clear outstanding long-term debt to make way for a sale.
The hotel is expected to have an operating deficit around $800,000 this year, reported the paper.
Johnson says he believes the hotel board could get an offer to at least cover the $13.3 million in bonds and loans backed by Trenton.
The hotel, which employees 81 people, will stay open for now, Yard said.
