Delhi News Bureau

STAMFORD — The Rexmere Hotel, a well-known Stamford landmark formerly known as The Red Carpet Motor Inn, closed Monday due to bankruptcy proceedings, leaving people who had booked rooms and events in the lurch.

On July 9, a group of more than 150 bicyclists participating in Peddle Pennsylvania are due to arrive in Stamford to spend the night before heading out on the next lap of their journey, along the West Branch of the Delaware River.

Susan Newill, owner of The Belvedere Country Inn, said she and Bea Westwater, owner of The Rexmere, had been working together to provide lodging for the bicyclists.

"We had planned to split the group up between the two places," Newill said. "I can handle all the meals here, but I am going to need help finding rooms.

"We have some things worked out, and we are going to pull it off," Newill continued. "But this is just the first group we have to worry about. I'm absolutely willing to help out. It's not good for the community if people are disappointed."

Local officials said the Rexmere's closure will be hard on the community, as well as on expected visitors.

"This is a weird situation," said Nancy Lanni, president of the Greater Stamford Area Chamber of Commerce. "People have planned weddings, reunions or have just booked rooms and they don't know the place is closed. Some of them are probably already arriving to find locked doors."

L. Joseph Keyser, vice president of The National Bank of Stamford, said the ownership of the property is in limbo.

On June 13, at a hearing of the U.S. Bankruptcy Court — Northern Division of New York, it was ordered that the bank could take possession of the personal collateral and real property, but a trustee to handle the property will not be appointed until the next hearing on July 11.

Keyser said the hotel must remain closed until the proceeding moves back to the Supreme Court and a foreclosure sale is scheduled in late August or early September. The bank began foreclosure proceedings about a year ago, he said.

Westwater filed Chapter 11 bankruptcy proceedings to stop the foreclosure. On June 13, the court converted the proceedings to Chapter 7 bankruptcy, which forced the closing.

Westwater said she desperately tried until the last moment to find an investor, but several potential backers fell through.

"We were jammed for the summer," Westwater said. "Every bit of the marketing we had put together had finally come to fruition.

"Everything that could have gone wrong did go wrong, and everything that went right happened about six months too late," added Westwater. "We gave it our all, but it wasn't enough."

Westwater verified that the motel was booked almost to capacity throughout the summer and there were numerous big events planned, but she has not notified anyone with reservations that the establishment is no longer operating.

"I haven't been able to call people because the computer wouldn't work," she added. Westover said she personally owned the computer and was able to take it home with her, but when she tried to turn it on, it wouldn't work. She said it was at a computer shop being repaired.

Westwater said a number of factors contributed to the downfall of the business, which she had owned since 1997. She said her marriage ended badly, the motel business was hurt when Scotch Valley closed last year and then when the Chapter 11 bankruptcy proceedings began, the court-ordered accountant failed to properly file forms and tax returns. She added that high property taxes and no concessions for businesses were the final blow.

Westover said she employed eight full-time employees and up to 40 people part-time.

Lowell Lewis, who originally built and owned the Red Carpet Motor Inn was upset to see it close.

"I think it's terrible," Lewis said. "It's bad, bad, bad for the community. I think there are people interested in purchasing it, but having it closed during the tourist season is awful."

Lewis built the business in phases, erecting the first 12 motel units in 1965. He added 12 more in 1969 and completed the construction in 1972 when he added the final 13 units, bringing the total to 37 rooms and an enlarged the dining room and kitchen. He eventually sold the business to his son, Gary Lewis, who in turn sold it to Westwater.

Ann Slatin, Stamford trustee, said, "It's a blow to our community, not only from a standpoint of lost jobs, but it is now another property that is not supporting a business."

Keyser said he hopes interested investors come forward as soon as the property is released for sale.

"We are a small-town bank and we know what this does to the community and how it impacts our other customers," Keyser said. "A bank's biggest nightmare is owning property. We are not in the business of running a motel and restaurant, so we hope that some one who is wants to own it."

Lanni said the Stamford Chamber of Commerce has asked Newill to field all phone calls from people who are concerned about reservations and bookings. Newill can be reached at 652-9366 days or 652-6121 anytime.