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Sneaky Pete’s heads into bankruptcy

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By Kurt Allemeier | Tuesday, March 11, 2008 |

LeCLAIRE, Iowa — Sneaky Pete’s is in Chapter 13 bankruptcy proceedings, and owner Russell Schickling won’t comment on the future of the long-time LeClaire restaurant.

The restaurant, Sneaky Pete’s Cowboy Steaks, Schickling and his wife, Kathy, are listed on the bankruptcy petition that was filed Feb. 27 in U.S. Bankruptcy Court in the Southern District of Iowa.

The couple and the corporation that includes the restaurant, lists total claims by creditors

as $871,901.45, with secured claims to creditors as $549,330.89, according to the petition. The

Schicklings and the restaurant list assets of $760,803.75. Of that, $703,240 is real property.

“I own four houses and a business,” Schickling said Monday. “I don’t owe $600,000 total.”

He declined to comment when asked about the future of the business that had its liquor license suspended the same day the bankruptcy petition was filed. The restaurant was open for business Monday.

“As soon as I get this all straightened out, I’ll talk about it,” he said. “I don’t need anymore headaches. No one knows what is going on but me and my lawyer.”

Under Chapter 13 bankruptcy, the petitioners develop a payment plan to creditors over three to five years. It also provides an opportunity for the petitioners to save their homes from foreclosure. Chapter 13 also acts as a consolidation loan to an appointed trustee who makes payments to creditors.

To be eligible for Chapter 13, petitioners must have less than $300,000 in unsecured debt. The Schicklings list $224,942.65 in unsecured debt, according to the petition.

Along with the restaurant property, at 207 N. Cody St., LeClaire, valued at $201,440, four other properties are listed on the bankruptcy petition ranging in values from $95,740 to $181,990. Three of those properties are located in LeClaire, and the fourth in Davenport.

The Iowa Department of Alcoholic Beverages suspended Sneaky Pete’s liquor license at the request of the Iowa Department of Revenue for $21,000 in unpaid sales tax. The Schicklings have applied for a personal liquor license, but no action has been taken.

The Department of Alcoholic Beverages is also reviewing an incident from Feb. 29 when LeClaire police officers found the restaurant serving alcohol without a license. No action has been taken in that investigation.