Garden City’s Stagecoach Inn started serving beer, wine and alcohol on Jan. 25 after regaining its liquor license. The Idaho State Tax Commission had seized the license and initiated a public auction set for Jan. 24, though that process was halted after the restaurant filed for Chapter 11 bankruptcy. That bankruptcy action allowed the restaurant to recover its liquor license before it could be sold.
Co-owner Jennifer Fraser declined to comment Jan. 30 on how the restaurant received its liquor license back, and she also declined to say anything about the bankruptcy proceedings. The restaurant’s Facebook page announced the changes by offering drink specials and thanking patrons for their “kindness and support during that mess.”
Fraser and her husband, Rick Fraser, filed for bankruptcy on Jan. 22. According to court documents, that bankruptcy case is still going on, with a notice being mailed out to the Stagecoach’s creditors on Jan. 26.
Bob Faucher, an attorney with the Boise law firm Holland & Hart, said the bankruptcy filing allows the Stagecoach to regain possession of assets that creditors have seized, which includes its liquor license. Now, the Stagecoach will need to work with its creditors, including the Tax Commission, on plans to pay its debts.
The Stagecoach’s bankruptcy filing valued the liquor license at $250,000. According to the filing, the Stagecoach owes a small business lender $263,000. State tax liens placed on the company in six separate months of 2012 are valued at $75,000, and the company listed $120,000 in unpaid 2010 federal income taxes.
Faucher also said the Stagecoach filed for bankruptcy as a small business debtor, which enables it to take advantage of provisions in bankruptcy law making it cheaper and easier to approve a plan to pay its creditors.