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Loveland’s Front Range Gun Club sues former owner

LOVELAND — The owners of the Front Range Gun Club in Loveland are suing its former owners as the business goes through the bankruptcy process, claiming the club was in far worse shape than described at the time of sale. In a complaint filed in the U.S. District Court of Colorado Wednesday, the gun club claims Edward and Steven Klen of Diverse Construction Inc. sold the business and its location at 697 N. Denver Ave., Suite 138, to the gun club’s owners in full. The suit alleges the Klens made multiple misrepresentations about the business’ financial health and the ability of the property to handle the specific technical demands of hosting firing ranges, including how heavy of ammunition the gun traps could handle. The suit also alleges the Klens, who own the homeowner’s association that is supposed to perform maintenance on the properties, have refused to upkeep the gun club and banned it from placing a roadside sign despite allowing other nearby tenants to do so. Notably, the complaint alleges an audit by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives found the Klens removed firearms from the business without authorization and didn’t properly document or report all of its weapons sales to the agency. The gun club at 697 N. Denver Ave., filed for Chapter 11 bankruptcy in late July after it was hit with a $3.28 million foreclosure demand in May. The bankruptcy filings at the time claim $1 million of the $3.58 million in liabilities is contested, listing “fraud and misrepresentation by omission.” In a Chapter 11 bankruptcy, a business attempts to reorganize its debts to its creditors and emerge as a healthier company versus a Chapter 7 bankruptcy that liquidates the firm and splits the proceeds among the debtholders. The attorneys listed for the Klens in the lawsuit did not respond to a request for comment Thursday. © 2020 BizWest Media LLC
Source: BizWest

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