Raleighwood Cinema files for bankruptcy, is now closed
James Michael Keane, owner of Raleighwood Cinema and Grill, filed for Chapter 7 bankruptcy protection on Monday.
Posted — UpdatedRaleigh Entertainment Corporation, Raleighwood's parent company, filed for Chapter 7 bankruptcy protection on Monday, according to court documents filed with the bankruptcy court of the Eastern District of North Carolina.
In Chapter 7, the assets of the debtor are sold off to pay its lenders.
Raleighwood owes $777,209 to creditors, according to court documents. Those debts include $63,353 for its lease at Falls Village.
The company also owes Walt Disney Studios $5,527 for film rental usage.
The filing lists an estimated $150,000 owed to Keane's wife, Denise, for "loans to pay business bills." In his personal Chapter 7 bankruptcy filing, Keane noted that his wife took out some equity from their home to pay Raleighwood's debt in March. Denise Keane had refinanced the home and took on the debt because her husband "didn't quality for a mortgage," according to the documents.
In the Raleigh Entertainment's filing, Denise Keane is listed as being owed $338,006 for "uncashed paychecks." James Keane is also listed as a creditor for $169,005 in uncashed checks.
In his bankruptcy filing, Keane says he owns all shares of stock in Raleigh Entertainment Corporation.
In recent years, other dine-in theaters have moved into the Triangle, including Cinebistro at Waverly Place, Cinebowl in Park West Village, both in Cary, Alamo Drafthouse and Raleigh Grande, both in Raleigh and AMC Dine-In locations in Durham and Holly Springs.
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