McMahon’s Prime Steakhouse and Old Pueblo Grille remained closed Friday, a day after a U.S. bankruptcy court seized the properties as part of an unresolved bankruptcy.
The court action came roughly 16 months after Bob McMahon filed bankruptcy for his McMahon Properties LLC, which owns the restaurants and the office complex adjacent to the steakhouse. The bankruptcy came on the heals of Alliance Bank, one of McMahon’s biggest creditors, auctioning off the properties to repay more than $5 million that McMahon reportedly owed them.
McMahon’s bankruptcy listed debts at between $1 million and $10 million including $82,355 in back taxes.
McMahon on Thursday said the bankruptcy court action took him by surprise.
“I am flabbergasted,” he said. “Both restaurants are in the black. I have no clue. I did everything my attorney told me to do. I’m just at a loss.”
McMahon was pessimistic as of yesterday that the restaurants would reopen.
