BRISTOL, Tenn. – There were no takers Monday on the front steps of the Sullivan County Courthouse during a foreclosure sale of the old H.P. King building – the site of the now-defunct 5 O’Clock Bar & Grill.
In August 2007, Ricky and Ronda Caudill signed a note to purchase the building at 620 State St. from Jean Burnette. But their failure to make payments led to a default on the terms of the agreement.
The property now returns to Burnette, and the Caudills already are moving out.
“All I can say is I’m ready to move on,” Burnette said. “They had made a pretty big investment, but things happen for a reason.”
The Caudills did not return three telephone calls seeking comment on Monday.
When the business opened in February, it became the city’s roomiest – and perhaps most unique – adult venue. The building, which once was the largest department store between Roanoke and Knoxville, became a business with a multitude of offerings, including live music, karaoke, pool and more.
The establishment was certified by the city to hold 565 patrons. That is the highest allowed occupancy of any business selling alcohol within the city limits.
Joseph B. Lyle, with Hale, Lyle & Russell, stood outside the courthouse and read aloud the required notice about why the property was up for auction.
“We’ve run an advertisement in the paper three times about the foreclosure sale, as required by law,” he said. “In Tennessee, you basically go to the courthouse and sell the property in this situation. Since there were no bidders, the property remains in Ms. Burnette’s name.”
The selling price to the Caudills was about $475,000, Lyle said.
“From this point, the Caudills will have to move out, and it’s going to be up to Ms. Burnette as to what she wants to do with the property,” he said.
Last month, the Tennessee Department of Revenue chained the business’ doors and posted warning signs at the site.
Officials confirmed that the property had been seized but would not specify whether it was because of nonpayment of franchise and excise taxes or sales tax defaults.
Ronda Caudill told the Herald Courier at the time that the business was “not about to shut its doors.”
“The property reverts back to Jean, and we’ll be helping her get a new business in there,” said Mike Sparks, the city’s deputy city manager/economic development. “We’re also sorry for the Caudills – it’s a great property.”
The Caudills continue to operate a 5 O’Clock Bar & Grill at 35025 Brittany Lee Drive in Glade Spring, Va.
ggray@bristolnews.com | (276) 645-2512
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