Boatworks at Tahoe LLC, the company behind the Boatworks lakefront mixed-use property in Tahoe City, California, has initiated a Chapter 11 process. The filing comes as the company faces financial challenges tied to the property, including a pending foreclosure proceeding involving the real estate.
Note: Chapter 11 allows businesses to reorganize their debts while continuing operations under court supervision. A filing does not necessarily mean a company is closing. For additional information, readers are encouraged to contact the business directly.
Boatworks at Tahoe LLC Enters Bankruptcy
Case records, as available on PACER, show that the company submitted its petition on August 11, 2026. The records identify Margaret Marie Murphy as Boatworks at Tahoe LLC’s authorized representative for the proceedings.
Reno Fernandez of Binder Malter Harris & Rome-Banks LLP is representing the company in the bankruptcy proceedings.
Foreclosure Proceedings Involving the Property
Boatworks at Tahoe LLC’s recent filing comes against the backdrop of a foreclosure proceeding involving the lakefront property in Tahoe City, California.
According to The Real Deal, Citizens National Bank of Texas, the lender tied to the property, filed a notice of default in January 2026. The decision came after the owners allegedly failed to pay property taxes and provide proof of insurance.
The outstanding balance was estimated at approximately $14.4 million. A trustee’s sale was scheduled for August 12, 2026, in Roseville, California.
The foreclosure proceeding relates to the property securing the loan. The Chapter 11 filing may affect the timeline of the foreclosure process, but court proceedings will determine the company’s next steps.
The latest Chapter 11 proceedings may affect how the foreclosure moves forward, but the filing does not by itself imply that the property or company will be sold.
Highlights from the Petition
According to the bankruptcy filing, the company estimates that no funds will remain available for distribution to unsecured creditors after administrative expenses are paid.
A summary of other details from Boatworks at Tahoe LLC’s Chapter 11 petition is shared here:
- Filing Date: August 11, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Eastern District of California
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-24577
- Estimated Assets: Between $10,000,001 and $50 million
- Estimated Liabilities: Between $10,000,001 and $50 million
- Estimated Creditors: 1-49
About the Company
Boatworks at Lake Tahoe is a lakefront property in downtown Tahoe City featuring lodging, restaurants, retail shops, and other businesses. The property features the Inn at Boatworks, which provides newly renovated rooms and King Suites, with a location near Tahoe City’s shops and restaurants.
The destination also includes boutiques, restaurants, gift shops, art galleries, and jewelry stores. Its dining offerings include Jake’s on the Lake and Tahoe Wine Collective. Its retail component provides a range of shopping options, including The Lucky Horseshoe, and others.
The upcoming proceedings are expected to determine the company’s next steps and provide better clarity on the property’s future.
