Kobra Properties Inc., the Roseville-based real estate development company built by restaurateur Abe Alizadeh, filed for bankruptcy protection on Wednesday.
Alizadeh, an Iranian immigrant who rose from making tacos at Jack in the Box to become a major California franchisee of the fast food chain, blamed the slumping economy for the Chapter 11 filing.
"Like families, governments and businesses everywhere in the Sacramento area, America and around the world, our company is facing difficult financial challenges," Alizadeh said in a statement Wed-nesday afternoon.
He could not be reached for further comment.
According to documents filed in U.S. Bankruptcy Court in Sacramento, Kobra has racked up between $10 million and $50 million in unsecured debts. The company also has been sued for millions in unpaid loans this year and has tried to liquidate some of its holdings to raise money.
Bankruptcy documents indicate that Kobra's top 20 largest unsecured creditors include nearly $600,000 owed to Frayji Design Group Inc. in Roseville; $453,000 to commercial brokerage firm CB Richard Ellis; and nearly $200,000 to LP Consulting Engineers Inc., a Clovis-based engineering firm.
Alizadeh, 49, spoke little English when he came to the United States in 1977. He eventually enrolled at California State University, Chico, where he graduated with an agricultural mechanics degree in 1982. While there, he worked at a Jack in the Box restaurant. He eventually rose to manager.
He bought his first Jack in the Box franchise in 1986, launching a fast-food empire that would eventually spread throughout Northern California.
After starting Kobra, Alizadeh built it into one of the region's biggest commercial real estate development firms. The company reportedly owns nearly three dozen commercial developments totaling more than 3 million square feet. Several of them were listed for sale earlier this year in an attempt to raise cash.
As his empire grew, Alizadeh expanded into other restaurant formats, including TGI Friday's. Last year, he opened Crush 29, a Napa-themed restaurant and wine store on Roseville's Douglas Boulevard.
None of the restaurants is affected by the bankruptcy filing, according to the statement released Wednesday.
In 2005, Alizadeh headed a group that purchased the Portland Beavers, a Triple A baseball team affiliated with the San Diego Padres. He sold the team last year for an undisclosed sum to Merritt Paulson, the son of U.S. Treasury Secretary Henry Paulson.
Signs that Kobra was in trouble emerged this year. First Tennessee Bank in August sued the company for failing to make payments on a $5.9 million Natomas land loan.
Another bank, Cleveland-based KeyCorp, in April sued Kobra for past-due loan payments on projects in Rocklin.
Kobra recently shut down construction in Natomas, where it was developing a Sonic drive-in and a TGI Friday's near Truxel Road.
Call The Bee's Jon Ortiz, (916) 321-1043.
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