Local couples who have booked wedding dates at The Falls Event Centers in Elk Grove and Roseville need to be aware of recent developments regarding these venues and the company that owns them. On May 10, the U.S. Securities and Exchange Commission initiated a lawsuit against the owner of the venue chain, accusing him of misleading investors in order to raise funds.
According to the SEC filing, potential investors have been misled by The Falls’ CEO Steven Down for several years, who claimed that the event centers were profitable, when in fact the Falls’ own accounting records showed that the business had never turned a profit from the time it launched up to September 2017.
In addition, local Falls Event Centers in Elk Grove and Roseville have been delinquent on tax payments in recent months and have faced foreclosure.
What does this mean to you? Well, I’m not an accountant, an attorney or clairvoyant. But I have seen enough businesses come and go in this industry over the years to know that the Falls Event Center’s continued existence even just long enough to service existing contracts is not assured. The recent bankruptcy and sudden store closure of Alfred Angelo is a reminder of how wedding plans can be impacted by the realities of business. And if The Falls locations aren’t making a profit and the plan is to continue to operate on new investment funds, this SEC filing is likely to make that very difficult indeed.
So far, Mr. Down has struck a defiant tone, and reportedly has insisted that “The Falls will continue to conduct business as usual.” However, the Elk Grove property will reportedly be on the auction block on May 31. If you have a wedding booked at one of his venues, I guess you’ll have to decide whether you can rely on his word. The further out your date is, the more precarious your booking would seem to be. If, on the other hand, you are considering booking there and have not put down a deposit, it’s not a risk I would take at this time.
UPDATE May 31, 2018: A press release we received late yesterday from the management of The Falls Event Center includes an announcement that the Falls Event Center in Elk Grove LLC has filed for Chapter 11 bankruptcy, which they assert “…enables The Falls at Elk Grove to conduct business in the ordinary course, and assures that there is no disruption to any events during the restructuring process. This filing will impact only The Falls at Elk Grove and none of the other operating centers…”
This seems to be good news for couples who have booked event dates at this location or are considering booking. We’ll pass along any further info related to this story as it becomes available.