Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, January 19, 1994 TAG: 9401190171
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
SOURCE: Stephen Foster staff writer
DATELINE: BLACKSBURG LENGTH: Medium
Gables Associates, which a year ago filed for Chapter 11 protection from creditors' lawsuits, agreed in June to pay their major creditor, CP Partnership, $1.95 million or turn over the shopping center in 90 days.
The group was granted a 90-day extension after the first three months, but was unable to come up with the money.
CP Partnership includes the estate of W. French Pack Jr., a well known Blacksburg developer, and his widow, Devota; Jack W. Cook, who owns a chain of Radford dry cleaning businesses; Dick Cook, who is in the dry cleaning business in Roanoke and Blacksburg; and Billy Cook of Radford, who is now retired from a partnership in the dry cleaning business with the other two Cooks.
"In a perfect world, you'd own a shopping center and be making millions," said James Douthat, a Roanoke lawyer representing Gables Associates. But, the group "just didn't get the financing together."
Douthat said it became apparent in December that Gables Associates wasn't going to make its deadline. The bankruptcy matter was resolved last week in U.S. Bankruptcy Court in Roanoke.
Douthat said now it was just a matter of Fred Myers, who heads Gables Associates, signing the deed. Myers, who lives in Nashville, Tenn., would not comment.
"We're going to get it back to where it's in good shape," said Bob Pack, a Blacksburg real estate developer who is managing his father's estate.
Problems for Gables Associates began in 1990 when Wade's Supermarket, which was located in the shopping center at the time, sued Gables Associates for $3.15 million over its agreement to bring in a Harris Teeter supermarket.
Wade's, now located in a shopping center across the street, lost that dispute in the Virginia Supreme Court in 1992, but continued to fight Gables Associates over specific details.
Gables Associates eventually filed for bankruptcy when Integon Insurance of Winston-Salem, N.C., threatened to foreclose. Integon sold its note to CP Partnership last February.
But Gables Associates was unable to raise the money to remodel the center for Harris Teeter while at the same time paying off CP, Pack said.
"We don't have to borrow the money" that Gables Associates would have had to, Pack said. "That puts us in a better position.
"We hope to get Harris Teeter in," he said. If the grocery chain is still interested, it would take 9 to 10 months to remodel the shopping center before the store could move in, Pack said.
Gables has suffered high vacancy rates ever since Leggett moved out in 1988 and relocated in the New River Valley Mall.
The shopping center currently is more than half empty, Pack said. If Harris Teeter were to move in, the center would be more than three quarters full.
"Ninety percent would probably be pretty good," he said.
Wooing a supermarket or other major business to the center is of the utmost importance, he said.
"Without an anchor [store] you can't really do a whole lot," Pack said. But, "within a year, we're hoping to get the thing back together."
by CNB