The El Diablo-Sketch-Jesse Morreale saga continues. The Denver Post reported yesterday evening that a company operated by Sketch and El Diablo owner Jesse Morreale has filed for bankruptcy protection and is facing foreclosure on the Broadway building that houses the two restaurants.
Last week, in the U.S. Bankruptcy Court of Denver, Morreale Hotels LLC filed for Chapter 11 bankruptcy listing 13 unsecured creditors with claims totaling $6.8 million. According to documents on file at the Denver Public Trustee's office, there is a separate foreclosure action set for January 3, 2013 involving the building where the two restaurants operate at 21 W. First Avenue. The Denver Post article states that Morreale denied the accuracy of the information and claimed that the foreclosure auction will not take place on January 3.
Earlier this year, El Diablo and Sketch were closed for three weeks after a shitstorm debacle with the city of Denver after a dispute between city officials and Morreale over building-safety issues. Back then, the City's Board of Appeals ordered both businesses to vacate the 106-year-old First Avenue Hotel as it was said to be in dire need of repairs that Morreale failed to complete despite commitments to do so. Only a couple of months after that saga, Morreale was kicked out of the space that housed Rockbar on Colfax after the city of Denver refused to renew the establishment's cabaret and liquor license.