Hawthorne Race Course Files Chapter 11, Seeks Buyer to Preserve Racing

Hawthorne Race Course, Inc. filed a voluntary Chapter 11 petition in U.S. Bankruptcy Court in Chicago on Feb. 27, a move president and CEO Tim Carey said was “the right thing to do for the Illinois horsemen and for our employees and their families.” The filing seeks to preserve racing in Illinois by prioritizing accrued purses and payroll, attracting a buyer or investor, and potentially pursuing a Section 363 sale of assets as a going concern.

A packed docket sets the immediate agenda: a bankruptcy hearing is scheduled March 2, 2026 at 12:00 PM in Courtroom 682, 219 South Dearborn, Chicago, where motions to employ Omni Agent Solutions as claims and noticing agent, to pay prepetition wages and benefits, and for joint administration of related cases will be heard. The lead case number is 26-03505 for Hawthorne Race Course, Inc., with member cases including 26-03512 Carey Heirs Properties, LLC, 26-03515 Suburban Downs, Inc., and 26-03517 Post Time Catering, Inc.; attorney Barry A. Chatz filed the key motions and Joel A. Schechter filed an appearance on behalf of Latto Capital LLC.

The human and racing stakes are immediate. ITHA president Chris Block told horsemen, “We’re telling them to wait for next week to materialize and see what the bankruptcy judge does. We'll see at that point in time if Hawthorne gets the approval from the judge for the financing to be put in place so they can move forward, take care of the Harness horsemen and the Thoroughbred horseman that they owe, as well as their own in-house issues with their employees on paying them.” At the time of reporting, Thoroughbred Daily News estimated about 175 Thoroughbreds stabled at Hawthorne under roughly ten trainers, with other trainers waiting to ship in.

The petition lists a wide gap between assets and liabilities, with assets reported at $50 million to $100 million and liabilities at $100 million to $500 million; disclosed unsecured claims include Fanatics LLC for more than $8.75 million, Monarch Content Management for more than $7.4 million, Aria Group Architects for more than $5.6 million, and W.E. O’Neil Construction Co. for more than $5 million. Court papers and reporting also cite discontinued simulcast arrangements, litigation and monetary judgments, rising regulatory fees, and Suburban Downs’ recent suspension of its organizational license and termination of internet wagering as contributors to the distress.

Hawthorne frames its struggle against a long regional role: Carey’s bankruptcy declaration recalls converting the track after the 2016 Balmoral and Maywood harness closures and says, “Since 2022 and the closing of Arlington Racecourse, we undertook the sole responsibility of underwriting the Illinois horse racing industry in Northern Illinois and are the last racetrack operating in Northern Illinois bearing the increased burden of greater purses and regulatory expenses.” Hawthorne traces its first thoroughbred race to May 20, 1891, added harness racing in spring 1970, and is described in filings as the country’s only dual-breed racetrack.

Operational relief requests underline urgency: the debtor filed a motion to pay prepetition wages and continue employee benefits with a request for shortened notice, and a receipt shows the voluntary petition fee of $1,738. Hawthorne says the reorganization “hopes” to save horse racing in Illinois and preserve 250 jobs and the homes of hundreds of backside workers; Neil Milbert’s reporting notes Hawthorne employs more than 250 people and that stable-area residents number roughly 300 to 500 depending on the season, with the longest-tenured employee at 54 years.

Uncertainty remains. TDN cautioned, “To be clear, this is a plan not a certainty,” and John Walsh told the Illinois Racing Board on Jan. 28 the track was unable to pay its bills or honor returned checks to horsemen. Carey said he hopes to finance a thoroughbred meet and to reacquire some simulcast signals, but the March 2 hearing and subsequent court rulings will determine whether reorganization, a sale, or another outcome preserves live racing and the payrolls that support Northern Illinois backstretches.