Spartanburg-based Extended Stay Hotels Files for Bankruptcy

Luxury industry is usually seen as a great place to be, and most do not realize that a company could through tumultuous phases where they could face legal, financial and other troubles.

In fact, there is nothing easy up there, and to manage some of the top companies providing the top notch services and products, bankruptcies have become a common phenomenon. This phenomenon has intensified after the rece3ssion, and unfortunately many still do not see these bankrupt companies as victims, but rather they rather view them as wrong doers.

Spartanburg-based Extended Stay Hotels is the latest to file for bankruptcy and they would also have to meet numerous deadlines as well. The reason for their troubles began with a sharp downturn in business and there wasn’t enough money to repay the $7.4 million debt.

With $7.1 billion in assets, $7.6 billion in liabilities and revenue of about $1 billion for 2008, Extended Stay Hotels has accepted a $905 million offer from a consortium led by Greenwich, Conn.-based Starwood Capital Group. If the offer gets the U.S. Bankruptcy Court approval, Extended Stay would receive the $905 million.

Via: Goup State

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