Olmsted Developer Seeks Bankruptcy Protection
Lowes Foods, one of the development's magnet stores, is open and expected to stay open. Glenn M. Sides
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An advertised foreclosure sale of three Olmsted Village properties was halted Thursday when the corporations involved filed for reorganization under federal bankruptcy laws.
The three corporations named as debtors in the sale have filed under Chapter 11, which allows them to work out a way to continue operations. It does not mean the companies are going out of business.
Chapter 11 proceedings are designed to rehabilitate a creditor instead of forcing the sale of property that pays only a fraction of the debts involved.
The foreclosed properties are parts of Olmsted Village, a larger complex of shopping centers, offices and a hotel off N.C. 211 just west of Pinehurst. It is in the town limits of Taylortown. Only certain parts of the larger center are involved.
Major stores in the parcels, the so-called "magnet" stores, are open and expect to stay open, according to Pinehurst attorney Jim Van Camp. He represents developer Marty McKenzie, who has personally backed his developments as a guarantor on the loans involved.
Jos. A. Bank Clothiers, Lowes Foods, Rite-Aid Pharmacy and the new Wachovia Bank branch are also protected by agreements written into their leases, according to court documents.
The Chapter 11 reorganization would not affect them in any case, Van Camp said. There is nothing in these proceedings to alarm any of the many shops and restaurants in either Olmsted Village or its sister center, Camellia Parke, he said.
All this means is that three corporations have filed Chapter 11 petitions with a schedule of assets and liabilities and a statement of financial affairs. The objective is to adjust and reorganize their obligations so as to allow business to continue.
Most of the time in such cases, the debtors remain in possession of the property, while they develop a plan and generate funds to pay the debts. Sometimes a trustee is appointed upon the request of creditors.
The ability of these corporations to remain in possession and to continue to operate the business is likely a substantial reason for their decision to file under Chapter 11 - it puts a stay on proceedings against them like the foreclosure sale while still offering protection to the creditor on the loans.
But coming up with a reorganization plan and its approval take time. In the meanwhile, during the period between their filing and confirmation of a plan, business will be carried on pretty much as usual.
Contact John Chappell at (910) 783-5841 or by e-mail at jchappell@thepilot.com.
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Comments
dashjackson 3 years, 2 months ago
I see the comments made about John Chappel have been taken down - interesting. Guess the paper has its own point of view and protects Mr. Chappell for his own view but leaves out the views about him when others write in about him. I hope many of you do not re-subscribe or at least cancels The PIlot. I have never seen such a negative paper especially since Mr. Woronoff bought it. The Pilot will never get my money and will never get a hit off the internet. I hope and pray another paper comes to this wonderful county of Moore and especially the Golf Capital of the world and the village of Pinehurst. Also, he needs a spell check. This is just one of the results of OBAMA killing small businesses and Mr. Chappel taking advantage of this socialist.The US was built on small businesses. They keep America running. I hope you all are watching Fox News. They are the only ones that tell it like it is. Going back to Mr. Chappel, I guess it makes him feel good about hurting people through the media. Does he want Pinehurst, Southern Pines, etc... to be ghosttowns? Blame Obama, don't blame Marty McKenzie - who grew up here and has contributed so much to Pinehurst. Hey, maybe you could do a little research on him and his wife's contributions. Positive would be good. But that probably wouldn't make the front page!
hcaeb 3 years, 2 months ago
dashjackson - I agree. The Pilot is not a public paper! I did not get to read Mr. Chappels remarks - enlighten us all. I am sure you will be taken off soon enough for the negative remarks - good luck.
dashjackson 3 years, 2 months ago
No, some remarks were written about him from some people and they took if off just like this one will be. Socialism??? Already at the paper!
dashjackson 3 years, 2 months ago
And you are right, they were taken off the day after we made them!
hchase 3 years, 2 months ago
The comments referred to have not been removed. Here is a link to the story http://www.thepilot.com/news/2010/feb.... Also, any user can go to his/her profile, click on the right side where it says comments and see every comment he/she has posted. Hunter Chase Online Editor
LB67 3 years, 2 months ago
oh PUH LEEEZ you tea bags are truly pathetic, blaming Olmstead village problems on Obama, I worked for Marty Mckenzie years ago ( long before Obama took office ) and I can tell you the problems are nothing but poorly managed funds, it is suprising that Homewood Suites still has the duck flag flying, during off season half the rooms don't have all the supplies, soap, shampoo, etc; they have borrowed from almost every hotel in town to get by, because the supplier will not fill his order until he pays his bill, that is NOT Obamas fault
dashjackson 3 years, 2 months ago
LB67, it seems you should join the Pilot! And we are not tea bags, we are conservatives that work for what we have. We should not be giving out hand-outs, we should be giving out hand-ups and help people get jobs. Maybe you should reread the Constitution and Declaration of Independence that is being changed before our eyes! You fail to mention all the success of Aronimink, The Theatre Building which would probably have been torn down without Mr. McKenzie and the Franklin Flats building, Bretton Woods, and more. If you worked for him, ummmmmmmm sounds like another Mr. Chapell and backstabber. It is called "unethical" to talk about previous employers. I hope your present employer knows your true colors, if you have a job.
LB67 3 years, 2 months ago
yes you are right it is unethical to speak of former employers, my sincerest apologies. That said, the point I was trying to make is that for you to blame Obama for the failure of a business is just wrong, you don't know the circumstances surrounding a business being unable to survive, the economy was in bad shape long before he took office, perhaps people giving hand outs ( ex: theater buildings, franklin flats ) when they should be paying their bills is part of the problem
None 3 years, 2 months ago
Wouldn't one think The Pilot has come a long way providing readers who want to express an opinion or comment on Editorials or Letters to the Editor, a forum that we now have that opportunity? It's better than one-sided opinions and editorials that no one could challenge or comment. Thank you Pilot staff and management. Tommy Davis
peterprints 3 years, 2 months ago
DashJackson suggests that one of the posters concerning the Olmstead Village bankruptcy use "spell check" when making comments about the situation but in that same posting he has several errors. Errors that "Spell Check" wouldn't necessarily pick up but a simple proofreading of his own comments would have caught. A lot of us would do well to reread our sputterings before clicking the "submit" button. In a later response to a post by LB67 who worked for Marty Mackensie and made the observation that anyone else who did saw a lot of this coming, DashJackson suggests he is unethical for speaking about a former employer. Is he kidding? Even Fox news reviews the books written by former Presidential appointees that are less than favorable toward their former employers. DashJackson suggests we all watch Fox News but they claim to be "Fair and Balanced" while DashJackson's only response to LB67 is to call him "unethical" and a "backstabber". He laments the fact the Constitution is being destroyed but where was he when they passed the Patriot Act under the previous administration and gave themselves the right to monitor among other things the books we check out of the library. Mr/Mrs/Miss/Ms DashJackson, people have been screaming because they feel the Constitution has been eroding for almost a decade. Congressman Ron Paul has been screaming even longer but for the past 8 years you haven't heard any of their cries...now, all of a sudden, you're the expert on the Constitution. Give us a break.
bigD 3 years, 2 months ago
DashJack- The Pilot makes money when you read the online issue. You do not have to click on the ads for the pilot to get paid. These advertisers pay a fee just to be on this page.
lovenlife 3 years, 2 months ago
I agree I think that freedom of speech is one of the most important rights that our great Constitution provides to it's citizens, however we can not help that it does also give people the ability to express things that are un-true. But, "junk" sells! But, as with most people, there are those people out there that would rather give a "statement" when they have no clue as to what they are speaking about, I will go on to further say, that those same types of people would rather see the faults in others, than to simply look in the mirror, LB67, I am sorry your employment with Olmsted "and let me help you to correct the spelling...." did not work out, maybe your attitude or ignorance got in the way..... I will go on further to give you a couple of web-sites that may peak your interest and your knowledge before you again go on to site things that are not true and "unjust" to a man, that deserves so much better than you had to say. If Mr. McKenzie is guilty of anything it would be that he gave someone like you a job in the first place. Oh excuse me, he probably does not even know you.... At any rate, why don't you visit kiplinger.com or the department of labor and statistics websites that will enlighten you a little further before you make assumptions. And, I would also like a little more help understanding how the government gave hand outs to the properties that you mentioned as Franklin Flats and The Theatre Building? The last time I checked the companies getting the bailouts where the banks and the large dealerships such as Chrysler and GMC... With all do respect, Do you read, do you watch the news? Again, please do a little research before you make comments about things that you have little or knowledge about. What everyone in the community right now needs to focus on is how to help a shopping center that helps to employ over 300 people...... A community is about helping those in times of need and not gloating over someone else's demise... Mr. McKenzie is Pinehurst, without him Pinehurst would be a solemn place.....Forgive someone who gives their heart and soul to a town, that can only stab him in the back.......... There are two things that happen when you are on top, people will bash you and want to be you..... There are people out there that would love to see people fall flat on their face, well not me...........I hope he comes out smelling like a rose.................. May God help you LB67......
LB67 3 years, 2 months ago
lovenlife I wasn't talking about goverment hand-outs, read my post before you go off on a tangent, maybe you can read between the lines if you try real hard.
I am not ignorant and I do not have an attitude, I don't care if you don't believe what I said, apparently you are the one that does not know the facts, but don't worry, I'm sure he will come out smelling like a rose, they usually do
peterprints yes, I along with several others saw this coming years ago
lovenlife 3 years, 2 months ago
Can you enlighten me and tell me how you could see this coming years ago? Also, you parenthesized the two properties, but forgive me because you need to go back to elementary school and learn "syntax" because obviously you missed that..... Because I went back an again re-read your comment and when again you parenthesize something with ex: that means example. I am sorry I am having to give a English lesson, but again, there are educated people like myself that are trying hard to comprehend your mere ignorance.
I also find it quite amusing that was all you could give me back from my well thought developed paragraph, I am sorry to say you really let me down. :( I am waiting for examples and a thought filled, educated, well developed response. Please Please help me............
oldtimer 3 years, 2 months ago
How in the world did responses to an article on a commercial real estate Chapter 11 filing morph into much of the nonsense written above? Some people must feel the need for a pulpit; some others must have forgotten to take their meds this morning. As to spell check, nothing beats paying attention in grammar school and using a dictionary in years subsequent.
None 3 years, 2 months ago
@dashjackson ~ you seem to know a lot about this blog ~ who was Gary Cameron?
blessherheart 3 years, 2 months ago
gary cameron was the one time partner of mckenzies in franklin flats
LB67 3 years, 2 months ago
lovenlife
RE: your well thought developed paragraph.......ummmm........which one? ....... they all kind of run together....... It really would be unethical for me to list every single reason why I saw this coming my first post to dashjackson for blaming Obama for small business failure in a blog about Olmsted village, my point to him/her was that Olmsted Village had problems long before Obama took office he/she pointed out that without Mr McKenzies help the theater building and Franklin Flats would have been torn down, in my next post I said PERHAPS people should be paying their bills instead of giving handouts, meaning if Mr McKenzie funded the restoration of these projects he should have been paying his bills instead. I admitted it was unethical and I apologized for posting this, for you to call me ignorant because you don't like what I posted is wrong.
lovenlife 3 years, 2 months ago
LB67, the village properties were obviously re-done long before the developements of Olmsted Village....... If you would like a history lesson too.. I will gladly help you with that. But, if you have some free time, why don't you visit the Given Memorial Library, and do a little research about the time-line of Pinehurst before again you "Assume" things that you know nothing about. Remember what they say about people that assume....
None 3 years, 2 months ago
@blessherheart ~ He and his mother were partners at one time. It's more subliminal than just a one-time partner/investors relationship. Public image is everything when success is tantamount to investors' cash flow.
Bernie Madoff had a public image of wealth, success, and a charismatic presence in financial circles. But then again he was a billionaire...and Mr. McKenzie would like to be one as well.
LB67 3 years, 2 months ago
A history lesson is not necessary. I'm not at all interested in Pinehurst, Thanks anyway To get back on topic, I did not intend to bash Mr Mckenzie, looking back I suppose it did come across that way.... He may have given his heart and soul to the town of Pinehurst but.... it doesn't matter how nice a person is, if they can't properly handle their finances, this is what happens
I added some extra punctuation just for you lovenlife ;~)
babiehop 3 years, 2 months ago
@lovenlife, since you seem so bent on small grammatical errors, respect is something due someone, not do. Interest is piqued, not peaked. Maybe you and the poster you criticized can attend the same remedial class. So many petty remarks, not just by you, but by others as well.
To get back on point, which three corporations are in a predicament ? I didn't see where the article by Mr. Chappell named them, only ones that were not in trouble. What's up with that ?? Well, at least I spelled his name correctly.
MLD206 3 years, 2 months ago
This is as much a "sign of the times" as it is anything. Its truly sad, but there are a lot more businesses in the area that will fail if something doesnt change. Its not bad enough that the economy is down, but the weather has also contributed to the demise of the local economy. We here as much as anywhere depend on mild weather to draw people here to spend money. That is how these shopping centers were built in the first place. Its sad that the shopping center never materialized to its full potential when the economy was thriving. It has been an asset to the community. Im not going to get into any personal issues on how these businesses have failed, but if the community doesnt support all of its local businesses then get used to seeing more "going out of business" signs in our area. Lets pray for a bountiful spring and the rest of 2010, for goodness sake we could all use it.
lovenlife 3 years, 2 months ago
Thanks MLD206! My main point in my post, was that the community needs to pull together instead of looking at or pointing fingers. No one including myself knows what happened. But it is safe to say that Olmsted needs our help! If you a Pinehurst resident shop Pinehurst! Help our local businesses.....
peterprints 3 years, 2 months ago
Okay, enough is enough. I know nothing about any of this so, like most of you, I feel confident to say Lovenlife is sleeping with McKensie. I base this solely on the vitriolic, personal attacks and petty picayune comments he or she or it is making. If McKensie is married I only hope Lovenlife is his wife, otherwise in order of "Best possible worst situations", Lovenlife is a "very" close female friend, his high school quarterback or a frisky inanimate object. Lovenlife's most recent comment was "My main point in my post, was that the community needs to pull together instead of looking at or pointing fingers." We certainly had to get through a lot of insulting, personal attacks to get to that nub of the problem. She never finished her thought of what we were "looking at". Was it: Crooks? Scoundrels? Manipulators? It would have been helpful if Lovenlife finished her/his/its thought. As to the second part of that sentence ("...or pointing fingers."), why is it when the aristocracy gets caught or screws up, we're all supposed to not point fingers and, hopefully, avoid making the same mistake twice, and pull together for the working class and save their minimum wage jobs
lovenlife 3 years, 2 months ago
Peterprints.... I am not McKenzie's wife, I am not a close friend of his, I am not his lover, I am a Moore County Citizen who shops, Olmsted Village shops, I visit doctors at Olmsted Village, I get my hair cut at Olmsted, I get my prescriptions filled at Olmsted. Where are you from?? Do you have some underlying agenda where you like to see people fall? Do you care about peoples families? Do you care about the roads you drive on? Do you care about our public schools? Do you realize how much tax money is made from the Olmsted Village development? And, why do you say "screwing up"? Have you not ever "screwed up"? Or are you another one that blames there own shortfall's on people like McKenzie? Obviously so!! I guess you are one of those PERFECT people, as the saying goes people that live in glass houses should not throw stones......
JohnChappell 3 years, 2 months ago
This wasn't a very happy story to write, but it was news. Taylortown is one of my “beats.” As both Olmsted and Camellia Parke are in Taylortown, that story was assigned to me as news writer. I tried my best to make it clear that nothing is closing. This is not the bankruptcy where everything goes on the block. Actually, this prevented anything going on the block.
I like to shop there. I have coffee and homemade scones at the coffee shop, and I buy clothes every now and then at Jos. A. Banks, where they are almost always on sale. After town meetings over on Main Street, I stop by Lowe's Foods for groceries.
My favorite used book store ever is in the upper part of Olmsted (which was not involved in the foreclosure). Volunteers sell slightly used books to help support the Given Library and the Pinehurst Archive.
I've known Marty McKenzie a long time. His sister-in-law was principal of Carthage Elementary and in our Rotary Club. Marty showed me through the attic at the Pinehurst Theatre building when he was gutting it to make a shopping mall. He gave me some of the old publicity from the days when I first stepped upon the stage with professional actors.
Over the dozen years since joining the staff of The Pilot, I have noticed something. Anybody, whether mayor or commissioner or businessman or developer or town manager, who actually does much of anything in Moore County is going to be criticized.
As for the personal comments posted about me, I'll add here what I just posted elsewhere:
Everybody here at the paper is proud of our new web edition that lets readers comment, even when stung by personal attacks from masked writers who never bothered to e-mail or phone. Our names, our e-mail addresses, our telephone numbers are in the paper and on the web.
At the end of everything published under my name you will see the following:
Contact John Chappell at (910) 783-5841 or by e-mail at jchappell@thepilot.com
So call me or write me please. If you want to post something that refers to a story that appeared in the paper, it would help everybody if you include a link to it so others know what you are talking about. It would also help, if you feel you've been misquoted, to tell us what you actually said.
Except when in a place (like a courtroom) where recording is not allowed, I try to capture everything in an interview with a digital recorder. It isn't only for accuracy, but because the way folks actually express themselves is more interesting to read. So, if I get something wrong despite such precautions, please let me know.
Sorry, dashjackson and cldvpm, for whatever I did or wrote that bothers you so much, whoever you are. I apologize for any misquotes or misspellings. As for spelling errors, my last name has a double-P in the middle and a double-L at the end.
That makes one L of a difference.
John Chappell
lovenlife 3 years, 2 months ago
Mr. Chappell:
I actually felt that you somewhat redeemed yourself with this story... Kudos to you!
bigD 3 years, 2 months ago
I agree with Mr. Chappell. This story is news. In fact, is is big news for our community. It has been sad for me to see such an empty development for such a long period of time. Mr. Mckenzie has developed a neat shopping center that will hopefully be vibrant some day. I have often dreamed of moving my office into the building with the castle tower.
I also believe that this comment section should not be used for personal attacks and name calling. Who really cares about spelling and grammar mistakes on this page. Often writers are trying to leave a quick thought and neglect to proof read or fix typos...so what.
None 3 years, 2 months ago
Well stated Mr. Chappell. Hopefully mature writers have a common interest in an exchange of thoughts, ideas and opinions. With respect to egocentric "elected officials" who make poor decisions, those decisions remain open for discussion. Like Chris Smithson, I have no problem providing my name or email address. It would be nice to have an avatar - jpeg of who is blindly posting. Tommy Davis toda1@mindspring.com Aberdeen