Days Inn by Wyndham in downtown Spokane has filed for bankruptcy protection.
ITS Investing Spokane LLC, whose principal is Lee Friedman, filed for Chapter 11 bankruptcy protection for the property at 120 W. Third Ave., according to documents filed with the U.S. Bankruptcy Court for the Eastern District of Washington in Spokane.
The bankruptcy filing indicates Friedman owes more than $3.9 million to creditors, which include franchisor, Wyndham Hotels & Resorts, Kabbage Inc., Ascentium Capital and Avista Utilities.
Friedman’s attorney, Timothy Fischer of Spokane-based Winston & Cashatt, said the property will remain in business.
Chicago-based Black Onyx Lending is providing $500,000 in “debtor in possession financing” to Friedman for employee wages, operating expenses, building repairs and to retain its Wyndham designation, according to the bankruptcy filing.
Debtor in possession financing is a special type of financing provided to companies in financial distress.
Friedman wasn’t immediately available for comment.
Friedman purchased the property for $5.7 million in 2018, according to the Spokane County Assessor’s Office.
Wyndham Hotels & Resorts has 9,200 hotels in 80 countries with more than 6,000 franchised properties. It operates a portfolio of 20 hotel brands that include Super 8, Days Inn, Ramada, Hawthorn Suites and Wyndham.
Days Inn also has a location in Coeur d’Alene.
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