The Dominion Club files for Chapter 11 bankruptcy - NBC12 - WWBT - Richmond, VA News On Your Side

The Dominion Club files for Chapter 11 bankruptcy

By Tara Morgan - bio | email

HENRICO, VA (WWBT) - It's dubbed the crown jewel of Henrico's Wyndham community, but The Dominion Club is in financial dire straits. The premier club and golf course filed for Chapter 11 bankruptcy.

Hundreds are losing big money. The private club and golf course, even restaurant, are all open for business, but under a dark cloud.

The Dominion Club in Glen Allen is reorganizing under Chapter 11 bankruptcy. 

"It tells me the economy is not nearly as healthy as we have been lead to believe," said Attorney Jason Krumbein, who practices primarily consumer bankruptcy law.

Krumbein said this does not look good for members. The club, which opened in 1992, blames the economy, with the demand for memberships declining in the early 2000's.

"My experience and my information leads me to say that businesses run into financial difficulties when people run into financial difficulties. People stop paying, for example, for their club membership," said Krumbein.

The club can't pay back $11.6 million in initiation deposits to former and current members. Of the roughly 800 impacted, each is owed between $29,000 and $2,000. Right now, they're not getting anything back.

Vendors who've received checks, but haven't cashed them may be out of luck too. 

"Typical with these situations if all the members are not going to get all the money, they will need to liquidate the company," said Krumbein.

The attorney for The Dominion Club said in six months or less, it hopes to emerge from Chapter 11 bankruptcy as a financially viable club and then transfer management to members.

One longtime club member, who's losing $29,000, told me off-camera, he believes it's a good plan, but said it should never have gotten to this point in the first place.

A lender is providing more than $11 million to The Dominion Club so it can operate while under Chapter 11 bankruptcy.

Copyright 2011 WWBT NBC12. All rights reserved.

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