A hybrid hotel and hostel in Silverthorne that was partly built from shipping containers has filed for Chapter 11 bankruptcy as it struggles to pay off nearly $17 million in debt.
The Pad, which opened in 2021, sought bankruptcy protection Tuesday. It is worth about $21 million, its owners say, and owes $16.7 million to lenders, builders and others. It reported $2.1 million in revenue last year and $1.9 million in the first nine months of this year.
“We wanted to build something that was unique and special,” co-owner Rob Baer said by phone Thursday. “Now we are in a very hard lending market and a lot of industries, not just hospitality, are going through a very hard refinance situation, so we find ourselves here.”
He and his wife, Lynne Baer, hope that bankruptcy will allow The Pad to remain afloat.
“We really want to save The Pad because it has made an impact on a lot of people,” she said.
The Pad, at 491 Rainbow Drive, backs up to a bike path and the Blue River, a short walk from the businesses that line Highway 9. Rooms range from $45-a-night dorms to $325 suites.
The Baers refer to The Pad as their “life’s work.” They dreamed it up in 2015, got approval to build it in 2018, and started construction just before the pandemic, Rob Baer said. Then came higher-than-expected construction costs and delays, according to the couple.
In August of this year, The Pad was sued in Breckenridge by BRMK Lending, of Seattle. BRMK said it loaned $12.9 million to The Pad and hasn’t been repaid. Last month, Judge Reed Owens agreed to let a receiver, Jeffrey Kolessar of GF Hotels and Resorts, run The Pad as a result. GF is a Philadelphia company that specializes in receiverships.
Two weeks before BRMK sued The Pad, Kevin Bowen did. Bowen said he was the operations manager there between late 2020 and late 2022, when he agreed to a $195,000 severance package. Bowen is suing because he has received only $150,000, he said.
The Pad and the Baers have not responded to the lawsuit, so Bowen has asked Owens to award him at least $45,000. His request is pending.
While the Chapter 11 case moves ahead, Lynne Baer said that she and her husband are “actively working to minimize disruptions and to preserve the essence of The Pad.
“For customers of The Pad, even though we filed Chapter 11, our incredible team is still there serving everyone, so we would love to see familiar faces,” she said Thursday.
“In light of everything,” Baer added, “we are hoping for a positive outcome.”