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Hawthorne Race Course Files for Chapter 11 as Illinois Racing Crisis Deepens

Hawthorne will seek court approval for debtor-in-possession financing to stabilize operations.

Overview

  • Hawthorne filed for bankruptcy in Chicago on Friday to restructure debt and pursue a buyer or investor to recapitalize the business and restart operations.
  • The Illinois Racing Board suspended the track’s harness license last month after financial strains and canceled early-season races over missing surety bonds.
  • Horsemen report at least $580,000 in bounced checks since August and additional sums owed, while the plan states accrued purses will be prioritized for payment.
  • The track cites years of difficulty financing its state-authorized racino and setbacks including a sports betting partner ending online and mobile wagering and curtailed simulcast wagering.
  • Hawthorne is working with Getzler Henrich & Associates to secure debtor-in-possession financing in a hearing expected next week, says roughly 250 jobs are at stake, and notes interest from potential buyers and recapitalization partners.