Over the past yr, a number of motels have seen their monetary issues attain some extent the place they needed to file for chapter.
In September 2025, the corporate behind motels such because the Tuscany and Resort 27 in New York Metropolis instantly filed for Chapter 11 chapter and shut down operations. Visitors with booked stays arrived to seek out that no workers had been there to verify them in. Prospects needed to discover locations to spend the night time in Manhattan at last-minute costs.
A month earlier, the developer and proprietor of the enduring Oheka Citadel — the Lengthy Island property constructed to seem like a French château and now listed among the many Historic Inns of America — filed for Chapter 11 safety amid money owed of over $60 million. The fortress, which can be generally booked for movie units and photoshoots, continues to be working as regular and accepting reservations.
Amid string of issues, Maui resort Pa’ia Inn recordsdata for Chapter 11 chapter
A complete nation away from New York in Hawaii, the proprietor of the Pa’ia Inn resort in Maui has filed for Chapter 11 chapter in the US Chapter Court docket
District of Hawaii in Honolulu.
Within the submitting, the corporate is registered in Pa’ia on the north shore of the island, alongside the well-known “Road To Hana” that runs by the rainforest to distant seashores on the jap finish of the state. Honolulu-based chapter lawyer Allison A. Ito is listed as representing Pa’ia Inn within the proceedings.
Associated: One other regional airline recordsdata for Chapter 11 chapter
Earlier this yr, a lawsuit filed in Could 2025 by the U.S. Equal Employment Alternative Fee alleged that proprietor Michael Baskin sexually harassed plenty of feminine inn staff.
The lawsuit states that Baskin had “regularly preyed on a class of female employees, including some teenagers, and subjected them to sexual harassment” since a minimum of 2015.
“The harassment included repeated, frequent and offensive touching, along with sexual advances and comments,” the announcement concerning the lawsuit filed within the U.S. District Court docket for the District of Hawaii on Could 15 states additional.
Pa’ia Inn marketed its villas on VRBO.
VRBO
Amid sexual harassment lawsuit, Maui resort’s bookings plummet
On the identical day, plenty of former staff held a rally in entrance of the resort to share their experiences.
Whereas the case waits to be heard in court docket, the eye across the accusations seemingly led to a dropoff in bookings and finally chapter.
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Because the lawsuit was filed, Baskin has not commented to information shops concerning the accusations that in some circumstances had been publicly reported in 2019. Previous to them coming to mild, critiques of the resort described it as an “independently-owned inn” that “fits beautifully into a laid-back, bohemian little town on Maui’s North Shore.”
“The owner of a company sets the tone for the entire workforce, and by openly harassing employees in front of other staff and patrons he created a hostile workplace,” Laura Ishida, appearing director for the EEOC’s Honolulu Native Workplace, stated in an extra assertion on the lawsuit.
“Retaliation against those who are brave enough to stand up for themselves and others also sends a chilling message to anyone else in the workplace.”
Associated: Low-cost airline to tug all Hawaii flights amid low demand
