Shotgun is the latest thing to come to Willie?
The Glendale Strip Club bowed out of the Chapter 11 process in the summer eight months after filing.
Shotgun Wiley has not come out of bankruptcy in the Ot historical sense, there are plans for a restructuring. Rather, Club 490 S Colorado Blvd. Asking a judge to dismiss the case in mid-July, he said it no longer seeks the protection granted by the bankruptcy proceedings.
The club wrote in a file in court on July 16, “With the introduction of effective vaccines, the lifting of the ban on occupancy, and the guidelines on masks and social distance, the business of Deb defaulters has stabilized and its chances of failure now seem low.”
Shotgun Wiley – most of whose owners are Deborah Dunafone, wife of the mayor of Glendale – blamed the initial filing for the epidemic business restrictions back in November, saying “the move gives us the only chance to survive in this precarious climate.”
In the spring of 2020 the club was closed for more than two months and again last November for days. According to the filing, it was closed for an additional six days this April “as a result of an outbreak of covid among numerous employees.”
And Shotgun Wiley isn’t the place to just go to takeout.
The club wrote in its July filing, “Tor subscribers had no alternative business opportunities from which more traditional theatrical restaurants could benefit themselves.”
In a request to dismiss the bankruptcy lawsuit, the club noted that the official Jared Police lifted all remaining epidemic restrictions on bars and restaurants in early July.
Stephen Long, a lawyer representing the club at GSL Trial Lawyers, told BusinessDen that business at Shotgun Wiley has been “good” recently.
“While there is still a significant risk of substantial closure, we are more optimistic than in the past about what can be avoided,” he said.
The epidemic, however, is part of what was discussed during the bankruptcy proceedings.
In a November filing, Shotgun Wiley said it has faced six lawsuits, including one filed by family members of Randall Wright of Kruger Real Estate Executive, who died in a dispute in Shotgun Wiley in 2019. Family members argued earlier this year that the filing was “an attempt to use the Covid-1 pandemic epidemic as a smokescreen to limit the recipient’s liability.”
But Shotgun Wiley wrote in a July 16 filing that the Wright family’s decision to file for bankruptcy was “not an important issue”, and that the club could “tolerate” the lawsuit without the protection provided by the bankruptcy proceedings. The club said it would probably spend six figures to protect itself from what the Wright family is claiming in the bankruptcy case.
“Therefore, bankruptcy protection is no longer desirable,” the club wrote. “The remaining 11 Chapter 11 General Administrative Expenses may result in an impediment to the future profitability of the business.”
Attorney Long said four other lawsuits filed by the club last November have been settled, which was also one of the reasons for the bankruptcy dismissal request.
Shotgun Wiley wasn’t the only local strip club that has endured some drama in the last 18 months.
The Adams County Strip Joint Players Club filed a lawsuit against the state and local health department in July 2020, saying it needed to keep strippers 25 feet away from customers, stating in its lawsuit that “sex requires less distance.” Both sides have finally agreed to take alternative measures to prevent coronavirus infection.
In related news, five Denver strip clubs, including The Diamond Cabaret Downtown, are getting new owners as part of a 88 88 million deal with Troy Lori and Houston-based RCI Hospitality Holdings.