Taconic Capital and Machine Investment Group scheduled UCC foreclosure auctions for the Tommie Hollywood and Thompson Hollywood on December 21, 2022. These auctions were then delayed to January 21, 2023, and we now understand that they may have been further delayed to February.
The food and beverage operator at the Thompson faces a federal unfair labor practice charge for firing workers after they engaged in protected, concerted labor activity regarding working conditions at the hotel. None of these workers have been returned to their jobs.
In addition to these labor issues, the Tommie and Thompson face lawsuits filed by contractors alleging millions in unpaid work and congressional scrutiny surrounding their EB-5 financing.
The common denominator with the issues at the Tommie and Thompson is Relevant Group. Taconic and Machine already bailed out Relevant Group in 2021 at the Tommie and Thompson, providing rescue financing that averted foreclosure by Calmwater Capital.
Taconic and Machine must not make the same mistake twice. The firms should either take control of the properties or find a suitable buyer that ensures the properties are responsible actors and are willing to address the ongoing ESG issues. This should include consideration of a labor peace agreement with UNITE HERE Local 11.
UNITE HERE Local 11 is a labor union representing over 32,000 hospitality workers in Southern California and Arizona who work in hotels, restaurants, universities, convention centers, and airports.
Jordan Fein, Lead Research Analyst
UNITE HERE Local 11