Jump Peoria - Chapter 11 Case Summary
Jump Peoria has filed for Chapter 11 bankruptcy to halt a scheduled UCC foreclosure sale by Southwest Heritage Bank, seeking to preserve going-concern value.
Business Description
Jump Peoria ("Jump Peoria" or the "Debtor") operates a trampoline and adventure park located at 8325 West Bell Road, Peoria, Arizona. The Debtor places a going-concern value on the business ("Business") of approximately $4,046,000.
- The Debtor asserts that the Property’s value is currently stable and that continuing operations is necessary to maximize the value of the Business.
Operations Overview
The Debtor’s operations are supported by a combination of park visitor fees and equity funding, with financial projections indicating a break-even performance for the current period.
Financial Performance
- For January 2026, the Debtor projects gross income of approximately $325,000 against aggregate expenses of $322,250.
- While the Debtor anticipates slight positive and negative cash flow fluctuations in the coming months, it intends to cover prospective short-term shortfalls through a combination of equity funding and franchise fee accommodations.
- Primary operating expenses include rent, insurance, utilities, merchandise, food and beverage, sales tax, management, franchise fees, and payroll.
Cash Management and Logistics
- Banking and Receivables: The Debtor maintains an operating account with Wells Fargo. Accounts receivable, derived from park fees and visitor payments processed by a merchant processor, are typically received within approximately three days.
- Disbursements: Almost all vendors, including those for rent and insurance, are paid via automatic ACH. Payroll is managed through a third-party provider, Paycor, with the next payment scheduled for January 27, 2026.
- Operational Continuity: The Debtor emphasizes that closing its existing bank account would disrupt operations for an indeterminate time by preventing the receipt of merchant deposits and blocking automatic payments to critical vendors.
Prepetition Obligations
As of the Petition Date, the Debtor’s primary liabilities consist of secured debt obligations and accrued payroll.
Secured Debt
- Southwest Heritage Bank: The Debtor owes approximately $2.4 million under a financing agreement with Southwest Heritage Bank (the "Bank").
- The Bank holds an asserted first-position security interest in the Debtor’s assets, including Cash Collateral.
Operational Liabilities
- Payroll: The Debtor owes approximately $35,000 to employees for the pay period covering January 12, 2026, through January 25, 2026.
- Utilities: The Debtor is current on its utility obligations.
Events Leading to Bankruptcy
Asset Valuation Dispute and UCC Sale
The Chapter 11 filing was precipitated by the Bank scheduling a UCC sale of the Debtor’s assets. The Debtor contends that the Bank’s valuation of the assets for the sale of approximately $700,000 was far less than the fair market value.
Chapter 11 Filing
On January 25, 2026 (the “Petition Date”), Jump Peoria filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. The filing stayed the scheduled UCC sale.
- As of the Petition Date, the Debtor held approximately $5,000 in its bank account.
- The Debtor continues to maintain possession and operate the business as a debtor-in-possession.