Everyone loves the time of year when the local fair opens for business. As one of the hallmarks of summertime, state fairs around the country attract locals and visitors alike. However, the economy has taken quite a toll on businesses such as fair and campgrounds everywhere. The State Fair of Virginia is no stranger to tough times and their fate may soon be determined in bankruptcy court.
The chances of the State Fair of Virginia opening this year are not looking promising, as many say it “would take a miracle.” The fair’s operating company, SFVA Inc., filed for bankruptcy earlier this month in attempt to resolve its debt troubles. Owing more than $80 million to 13 or more lenders, SFVA Inc. wasn’t able to effectively restructure its debts in Chapter 11 back in December.
Now seeking a business Chapter 7 filing, the company is headed towards liquidation. The 360-acre fairground could find end up in auction later this year, but many say this move isn’t likely. Criticizing the logistical and financial challenges the fairgrounds present, many say purchasing the property is too risky for investors. Without a buyout or auction, the fairgrounds are likely headed for a permanent closing of its doors.