What originally appeared in small print in a Jefferson County public trustee notice on Oct. 17 as a foreclosure notice on Fun City Family Entertainment has turned into a bankruptcy situation for the owner of the property in unincorporated Jeffco.
Rainbow Investments, a California investment and real estate management company, filed for Chapter 11 bankruptcy on Oct. 21.
The property was scheduled to be auctioned by the county on Nov. 6, but that will not occur.
Wayne Merritt, who is the owner of the Fun City Family Entertainment business at 9670 W. Coal Mine Ave. in the Littleton area, is worried that people will think he’s closing and that is not the case.
“People should know we are open and this situation doesn’t affect our business. We are not being foreclosed on,” he said.
Fun City boasts 144,000 square feet of indoor entertainment, including a gym, go-carts, bowling, miniature golf, laser tag and arcade games.
It is geared to families and offers bithday parties and group events.
Merritt said he has 85 employees and is confident that Rainbow Investments will work something out with the banks.
“We are just a small business trying to keep our people employed,” Merritt said.
Matthew Abbasi, attorney for Rainbow, said Rainbow intends to reorganize its debt.
“We are in the initial stages of motions. There will not be a sale,” Abbasi said.
According to county records, Rainbow took ownership in 2010.
Abbasi said there is value in the property and the cell towers that are on the property.
He said any fears neighbors might have that an abandoned site is imminent are unfounded.
“My client wants to revitalize and expand the development and bring more money into the local community,” Abassi said.
“My client is not in the liquidation business.”
Karen Groves: 303-954-2303, kgroves@denverpost.com or @yhkaren
