DANVILLE, CALIFORNIA – It’s a classic Danville destination, home to countless ducks, and the former location of one of the region’s best grocery stores.
Now, though, it’s officially entering the bankruptcy process.
Blackhawk Plaza’s owner, Ramanujan Group LLC, filed a voluntary Chapter 11 bankruptcy petition on March 18, according to multiple reports, marking the latest major blow for the long-troubled shopping center.
The filing means the company gets bankruptcy protection while it tries to reorganize its debts, and it also temporarily halts collection efforts and related pressure from creditors.
Quick note that we are journalists, not lawyers, and nothing here is legal advice.
For local residents, the news is significant not just because Blackhawk Plaza is one of the San Ramon Valley’s most recognizable retail destinations, but because the property has already been under intense strain for months.
Earlier reporting tied the plaza to foreclosure pressure connected to a $5 million loan, and a judge had approved a receivership process before the Chapter 11 filing paused that path.
The bankruptcy filing reportedly lists Ramanujan Group as owing between $10 million and $50 million to creditors and vendors.
Among the larger unsecured debts cited in reporting were more than $207,000 owed to Blackhawk Commercial Owners Association care of Vierergruppe Management, more than $112,000 owed to PG&E, and nearly $57,000 owed to East Bay Municipal Utility District.
These troubles are probably why Blackhawk has seemed to struggle so much lately. Vacancies have piled up. Draeger’s Market, one of the center’s best-known anchors, closed earlier this year after 18 years. Blackhawk Grille closed as well.
Some excellent businesses are still there. I love Blue Sakana restaurant, and you can still go there for sushi served in a boat if your party is big enough.
Again, we’re not lawyers. But based on our understanding, the bankruptcy does not necessarily mean Blackhawk Plaza will disappear. Chapter 11 is typically a restructuring process, not an immediate shutdown.
It gives the owners of Blackhawk Plaza time to figure out what to do next, without creditors being able to grab the mall in the meantime.
Still, the filing makes one thing unmistakably clear: the problems at Blackhawk Plaza are no longer just rumor, gossip, or scattered lawsuits.
One question many readers have had is whether the site is about to be turned into housing. As of early March, Contra Costa County said no applications had been submitted to build housing or otherwise redevelop Blackhawk Plaza.
Still, the county made it clear that zoning would potentially allow part or all of Blackhawk Plaza to become condos, apartments or other housing.
We’ll continue to follow this developing story. Make sure to join our free 925 News newsletter so we can keep you updated.
