Attempt to Resurrect Erie Social Club Ends in Chapter 7 Bankruptcy
David Stevens and David Montgomery, who attempted to revitalize East Erie Turners, in Erie, Pennsylvania, have filed separately for Chapter 7 bankruptcy, citing a $300,000 debt from the failed business venture, according to Ed Palattella reporting for www.goerie.com .Stevens and Montgomery created the consortium that purchased the East Erie Turners building in 2006, with a $300,000 mortgage from Northwest Savings Bank. In a pending suit, the bank foreclosed on the property last October, seeking repayment of the $300,000 principal and costs of more than $88,000.
Stevens, who filed for bankruptcy with his wife, lists assets of $80,623 and liabilities of $1.2 million, including $83,473 in unpaid federal income taxes. Montgomery lists assets of $13,422 and total debts of $522,811.
The two purchased the East Erie Turners trying to resurrect the city’s oldest social club, which was founded in 1880 and that moved into the 12,000-square-foot Parade Street building in 1925. The ownership group opened the resurrected club in June 2006 having spent almost $100,000 on renovations, an amount that Stevens averred climbed to $200,000. Stevens, a musician, and Montgomery, a teacher, refurbished the dining room and added horseshoe courts, darts, pool tables, table tennis and video games. As of June 2007, Stevens said the club had 42 employees and 2,700 members, more than double the amount he alleged it had in 2005.
However, the club was not able to generate enough revenue to offset its debts, going out of business in 2010. Its contents were sold at auction for an undisclosed sum last November. County records show the mortgaged building and unpaid property taxes were left behind.
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