Salem Consumer Square bankruptcy

Faced with $3.1 million in liabilities owed to 13 creditors, the Salem Consumer Square shopping center of Trotwood, OH declared Chapter 11 bankruptcy relief on January 5, 2021, according to the US Bankruptcy Court for Western District of Pennsylvania

The bankrupt shopping plaza, referred to as Salem Consumer Square OH LLC in the bankruptcy petition, holds its principal place of business in Dayton, OH, with another office location in Philadelphia. 

Of Salem Consumer Square’s 13 creditors with secured and nonpriority unsecured claims, nine creditors are contractors and material suppliers. 

Two unpaid construction work claims — known as mechanics liens — have also been filed against the property since 2019, with one claim still fully active and the other partially satisfied. 

Restoration material supplier Belfor USA Group, which is listed as a creditor with a secured and a nonpriority unsecured claim in the bankruptcy filing, also filed a legal complaint against Salem Consumer Square in February of 2020 for unpaid work. 

At the time of Salem Consumer Square’s bankruptcy filing, the Ohio shopping center reported the following: 

  • $3,134,072.65 in total liabilities 
  • $3,385,461.13 in total assets 
  • $247,387.87 in total checking 
  • $121,489.80 in accounts receivable 

Between 2019 and 2020, Salem Consumer Square reported a 27.4% decrease in gross revenue, according to the bankruptcy petition. In 2019, Salem Consumer Square earned $640,512.59 in gross revenue, followed by $464,531.54 in 2020. 

The Salem Consumer Square shopping center, which spans 272,234 square feet, is owned and managed by Moonbeam Capital Investments. The shopping center is home to an Office Depot, Catherine’s, Chase Bank, and Sally Beauty. 

Chapter 11 bankruptcy provides a debtor with the opportunity to reorganize their debts, business affairs, and assets. The plan of reorganization is designed to keep the debtor’s business alive while also distributing proceeds back to creditors over time. 


The three secured claims are worth a combined $139,620.52. While Belfor USA Group is listed with a secured claim, the petition does not list a claim amount. 

John Russ Montgomery County Ohio Treasurer holds the largest secured claim, valued at $104,620.52. Commercial real estate agency Beacon Commercial Limited of Philadelphia also has a secured claim worth $35K.  

Salem Consumer Square reports 10 nonpriority unsecured claims worth a combined $2,994,452.13. 

Of the 10 claims, nine involve contractors and material suppliers. Belfor USA Group, a national restoration company, holds the largest nonpriority unsecured claim worth $2.8 million, the amount the company is seeking in their current lawsuit against Salem Consumer Square. 

The remaining eight contractors and material suppliers listed in Salem Consumer Square’s bankruptcy petition with nonpriority unsecured claims include: 

  • Campbells Roofing Company – $2,750
  • Dayton Power and Light Company – $805.28
  • Essential Landscaping & Irrigation – $1,035.23
  • Houser Asphalt & Concrete – $2,250
  • Nations Roof of Ohio – $153,165
  • Pester Plumbing – $20,407
  • Studebaker Electric Co. – $13,142.13
  • Vectren Energy Delivery – $803.06

Liens and complaint filed against Salem Consumer Square 

Two mechanics liens have been filed against the Salem Consumer Square shopping center, one of which was filed By Belfor USA Group.

In September of 2019, Belfor USA Group placed a lien claim worth $3.9 million against Salem Consumer Square, according to the Montgomery County Clerk’s office. By January of 2020, the lien was partially released, leaving Belfor USA Group’s claim worth $2.8 million as of the bankruptcy filing. 

Subcontractor Nations Roof of OH also holds a mechanics lien claim against Salem Consumer Square as of January 2020 worth $159,285.

According to the Montgomery County Clerk’s office, Belfor USA Group’s complaint from February of 2020 was filed due to allegations of breach of contract, fraud, and unpaid work. Belfor USA Group is still seeking $2.8 million from Salem Consumer Square.