Rockin' Jump trampoline park at Xtreme Action Park in Fort Lauderdale, Florida, has filed for bankruptcy protection after steep revenue declines caused by the Covid-19 pandemic.
Seven Stars on the Hudson Corp, which owns the trampoline park also known as Spacebound, filed for Chapter 11 on August 24 in US Bankruptcy Court for the Southern District of Florida.
The company has $1.39m in estimated liabilities and $492,000 in assets, according to the court fling. The park was forced to close in March due to the pandemic. It reopened in early June.
Prior to closing, Rockin' Jump reported net income of about $21,000, but dropped to a loss of $31,000 in March, according to court documents. The business was operating at a loss in March, April and May.
The trampoline park reported net income of $18,000 after it reopened in June, but hasn't made a $32,000 rent payment since April, according to court documents. It received a $55,000 Paycheck Protection Program loan, the filing said.
The company's largest unsecured creditor is Wells Fargo, to which it owes more than $670,000, according to court documents.
Rockin' Jump has been involved in ongoing litigation with its landlord since 2019. The company filed a suit against MDG Powerline Holdings, an affiliate of Sunny Isles Beach-based Dezer Development, and owner of Xtreme Action Park.
Source: South Florida Business Journal
