Penguin Drive-In pursuing sale of trademark, equipment

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JEN WILSON

The Penguin Drive-In will take offers for its equipment and trademark through Nov. 30.

Jennifer Thomas

Staff Writer- Charlotte Business Journal

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The Penguin Drive-In's trademark is available for purchase. So is the Plaza-Midwood burger joint's equipment.

Lawyers for property owner 1921 Commonwealth Ave. Holdings and Penguin manager Lisa Ballentine announced an agreement today in U.S. Bankruptcy Court that gives interested parties until Nov. 30 to make an offer on the trademark and equipment.

Offers can be submitted to Ballentine's lawyer, Samantha Brumbaugh of Winston-Salem law firm Ivey, McClellan, Gatton & Talcott.

The agreement marks the latest chapter in the ongoing saga surrounding the Penguin.

Earlier this month, the Charlotte eatery was evicted from its home at 1921 Commonwealth Ave.

The building is owned by 1921 Commonwealth Ave. Holdings, a limited liability company that is managed by lawyer Don Rawlins.

At the time, a motion was pending to sell the Penguin's equipment and trademark to Sun Shark Holdings LLC for $125,000.

That sale has since fallen through.

The Penguin Drive-In was opened by Ballentine's father in the 1950s, and it became a staple of the Plaza-Midwood neighborhood.

But it has been plagued by financial issues in recent years. The eatery has been closed since July.

In August, the Penguin Drive-In and affiliated holdings filed for voluntary Chapter 11 bankruptcy protection, with liabilities of more than $375,000 reported.

Property owner 1921 Commonwealth Holdings was granted a judgment for possession in Mecklenburg District Court small-claims division after the Penguin failed to make lease payments and maintain electrical service to the building.

That bankruptcy filing resulted in an automatic stay of eviction and allowed the Penguin to temporarily hold on to its home.

Jennifer Thomas covers retail, health care and education for the Charlotte Business Journal.