The owner of a lavish hotel development near the site of Coachella, the famous California music festival, has filed for bankruptcy after lawsuits and delays stymied its plans, Bloomberg News reported. Glenroy Coachella LLC, which owns the Hotel Indigo development, sought chapter 11 protection yesterday in Los Angeles, according to a bankruptcy petition. The entity listed assets of $50 million to $100 million and liabilities of $10 million to $50 million. The bankruptcy filing comes after Stuart Rubin, manager of the project, faced a lawsuit from his business partner, Gary Stiffelman, for $50 million amid allegations of “incompetence and fraud,” according to the Palm Springs Desert Sun. The lawsuit alleged that the development spent two separate budgets of $25 million. Hotel Indigo, a division of InterContinental Hotels Group Plc, doesn’t list the Coachella location among its current properties. Construction on the project began in early 2017 under the guidance of Rubin’s son, Joseph, and was met with delays almost immediately, according to the Stiffelman lawsuit. The project was supposed to be completed in time for the 2018 edition of the Coachella Valley Music and Arts Festival, according to the lawsuit. Hotel Indigo Coachella was billed as a luxe, 35-acre resort close to the festival grounds, complete with a DJ stage, catwalk, 10,000-square-foot (3,049 square meter) pool, casitas and 250 guest rooms, according to a 2018 article from the Los Angeles Times.
