Peter Thomas‘s financial issues are nothing new – nor are his business failures.
His first season on Real Housewives of Atlanta he was seen losing his bar Uptown, but then Peter opened BarOne and announced he not only plans to expand BarOne, but also to open SportsOne in Charlotte, NC with new business partner Kordell Stewart – and to film a spinoff show about the bar business.
Now comes a report that Peter filed for bankruptcy and was borrowing money, again, from wife Cynthia Bailey to keep his business afloat. A report reveals that in 2013, Peter, via BarOne, filed for bankruptcy owing over $322,000k to various creditors including the IRS and his wife! At that time Peter claimed BarOne’s assets were only $61,000k.
According to documents, Bar One filed for Chapter 11, which would expunge their debts. Listed as creditors are $32,000 owed to the IRS, $118,000 to the State of Georgia for taxes, a slew of other debts, and a whopping $60,000 owed to Peter, himself, for personal monies he investing in the business and was using to cover its operating costs.
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But here’s the clincher: $40,000 of that money was actually borrowed from Cynthia who invested in the bar. In 2012 Cynthia loaned Peter $60k to open the bar, at one point BarOne repaid her, according to the documents, but then re-borrowed the capital of $40k.
Last summer Peter’s bankruptcy petition claims that in one month the bar earned only $1,500, but expenses were $100,000k. Peter stated that although BarOne was still open and operated, he was not paying bills.
In September 2013, the bankruptcy escalated as the trustee requested the Chapter 11 be dismissed, according to MediaTakeOut (We know, we know – but they have court docs).
BarOne, “is unable to pay its bills as they come due. Since the petition date, Debtor has accrued $61,817.55 in post-petition payables. Debtor’s post-petition, past-due payables include $17,339.09 owed to the Georgia Department of Revenue for Debtor’s tax obligations.” This was reportedly in September or October of 2013, in response to the trustees request that the Chapter 11 be dismissed.
The explanation continues, “Debtor has no apparent ability to generate sufficient cash flow post-petition, the Court is authorized to find that Debtor is experiencing a continuing loss to. . . the estate within the meaning of 11.”
The judge ultimately sided with the trustee and granted the motion to dismiss – which means BarOne’s bankruptcy was DENIED and they are still liable for all of their debts! The judge did not exonerate any of BarOne’s massive debts in the ruling. I wonder if Peter has been paying them down?
Peter claims the bar is doing well, although they are having difficulty with their lease as the owner of the building is in foreclosure. Peter claims he is trying to buy the property, but with BarOne’s bankruptcy petition on their credit as recent as last year I can see why that’s not panning out!
Let’s hope Cynthia doesn’t end up on the fired Housewives list anytime soon, because it appears they really need that paycheck!
[Photo Credit: Bravo]
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