YORKVILLE – The building that houses the Yorkville Bowl and Pinheadz is in foreclosure.
According to court documents, First Midwest Bank filed the complaint May 13 to foreclose the mortgages against Newark Properties, LLC; C.G.S., LLC; Yorkville Bowl and Pinheadz owner Greg O’Leary; and others listed on related loans for the properties at 1207-1211 N. Bridge St.
Court records said the borrowers are in default of loans that were part of the building’s first and second mortgages, with the amount totaling more than $1.6 million.
O’Leary said everyone in the ordeal is still working to get the financial restructuring in place to save the business and to keep everything up and running.
“We’re in our final stages of that being done,” O’Leary said.
Court documents said the borrowers are in default of the loans also because a notice of levy was issued against Newark Properties on April 13 by the Illinois Department of Revenue. The business also owed $73,599.18 plus accruing interest to the state department, court documents said.
O’Leary also confirmed that the state shut down Roadhouse Country Bar & Grill at 1901 S. Bridge Street, which is also owned by him, on Thursday, June 6 under very similar circumstances. He said it was the same issue where money was tight and the business got behind on tax payments.
“The only difference there is that we have no mortgage there,” O’Leary said. “We’re just renters.”
Matthew Brash of Newpoint Advisors Corporation was appointed as the receiver for the buildings, according to May 16 court documents. Court records said the receiver has full power and authority to control, manage, operate and improve, and take possession of the property.
O’Leary said he still owns Yorkville Bowl and Pinheadz but still needed to appoint a receiver just to protect the property of the closed businesses. He said it would be different if the bowling alley and bar were still open and operating, where the receiver would have to operate the businesses while O’Leary is trying to satisfy the mortgage.
According to court records, Brash also has full power to sell the real estate and personal property in the ordinary course of business or as a liquidation of assets. As of 12:41 p.m. Tuesday, June 11, the Yorkville Bowl and Pinheadz building, along with the nearby business strip, is publicly listed for sale for nearly $3.5 million.
O’Leary said the building had been privately listed for sale for a few years prior but is now publicly listed due to the current circumstances. He said it was listed privately under the mindset that anything is for sale for the right price, but there was no direct intention of selling it.
O’Leary said the status hearing for the foreclosure case is scheduled for June 24. Another hearing for a receiver’s report is scheduled for 9 a.m. Aug. 15 at the Kendall County Courthouse, 807 John St. in Yorkville.
O’Leary said he feels personally obligated to move as fast as he can to reopen the Yorkville businesses and be able to once again provide everything the bowling alley offers to the community.
“We still feel that we are tied to this not just with names and money, but with our hearts,” O’Leary said.
The update comes after the bowling alley and bar recently closed temporarily, following a temporary hold on their liquor license.
O’Leary had said May 9 that the business has been trying to refinance and they got a little behind on some state taxes in the meantime. Other delays at the state level didn’t help and that ultimately affected the business’ liquor license, since the state wouldn’t renew the license at the end of April, he had said.
A green sign from the Illinois Department of Revenue was posted on the door of the building at 1211 N. Bridge St., saying the business’s certificate of registration was revoked. That also was in light of a May 9 Facebook post where the business’s page administrators apologized for the inconvenience and confirmed the business was temporarily closed.
Yorkville Bowl staff said in a May 27 Facebook post that they are still working hard to get their doors back open as quickly as possible. They said they’re sorry for the inconvenience of the businesses being closed and that they appreciate patrons’ continued support.
“We understand completely how frustrating [it is] not being able to give an exact date for reopening,” another post on May 15 said. “We are working very hard to get back open.”
• This updated version of the story further clarifies the building is in foreclosure and has not been foreclosed. It also includes additional comment from O’Leary on Tuesday, June 11.