COVINGTON, Ky. -- The MainStrasse Village Association formally filed to declare bankruptcy this week.
The tax-exempt corporation, which puts on events including MainStrasse Goettafest, Maifest and Oktoberfest, said it owes a total of about $162,000 to between 100 and 199 creditors, but has only about $20,000 in assets, according to Chapter 7 documents filed in U.S. Bankruptcy Court in Kentucky Monday.
The association previously blamed large losses on bad weather at this year's Oktoberfest for its bankruptcy. Documents it filed this week show it owes thousands for security, EMS staffing, entertainment, setup, cleaning and other costs related to the event. They also owe nearly $50,000 to BB&T Bank for a line of credit.
The court documents also show that the association had a chance to get out of the festival business last year, but decided to continue. An outside business had expressed interest in buying the rights to Mainstrasse Goettafest, Maifest and Oktoberfest in February 2017, but the board voted then against outsourcing the festivals.
The future of those events is now unclear. The bankruptcy will not prevent local businesses from operating as usual.
A meeting of creditors is scheduled for Jan. 2 at the U.S. Bankruptcy Court in Covington.