Coach House Owner Files Chapter 11 : Nightclub: Gary Folgner seeks personal bankruptcy protection but says he hopes to be out of situation in 60 days.

Gary Folgner, owner of Orange County’s leading pop-rock concert nightclub, the Coach House, has filed for personal bankruptcy protection for the second time in eight years.

The San Juan Capistrano club, which has featured acts from Bonnie Raitt to Social Distortion, will continue to operate as usual, Folgner said Wednesday. He filed the Chapter 11 petition for relief from creditors Monday at U.S. Bankruptcy Court in Santa Ana.

Folgner, 51, blamed his troubles on the financial drain caused by the failure of another concert venue he operated, the Raymond Theatre in Pasadena, two years ago. With more than $2 million in borrowed money, he had unsuccessfully tried to turn the 1921 vintage theater into a pop concert venue.

Folgner said he is seeking to restructure his finances so he can pay tax-related debts over five years and eventually pay his creditors in full.

“None of my businesses will be affected by the filing,” he said. “I cannot afford to pay taxes and I’ve taken a Chapter 11 filing to protect my businesses. I will pay the government in full and other creditors too. I hope to be out of this in 60 days.”

Folgner also owns the Villa Mexican Restaurant in Dana Point and the Ventura Theatre concert club in Ventura. Since his businesses were not separately incorporated, Folgner said he had to file a personal Chapter 11 petition.

Folgner’s filing listed $474,791 in liabilities. Assets were not listed, but Folgner said he estimated the Coach House to be worth $1.5 million.

His biggest listed debt is $105,000 owed to the State Board of Equalization. Folgner said he had paid $140,000 in back taxes over the last four months but could not continue at that pace.

Altogether, Folgner still owes $230,000 in various sales, property and federal taxes, according to the filing. Debts for food, advertising, printing and other expenses make up the balance.

Folgner said the Coach House has a number of shows booked in 1993 that are expected to draw sellout crowds. He said the filing shouldn’t affect attendance or bookings, since his “reputation is pretty strong.”

The Coach House faces competition from the Rhythm Cafe in Santa Ana, which opened last fall. Folgner said the perception that the Coach House is in financial difficulty could hurt potential bookings, but he hasn’t seen that yet.

Folgner said he was concerned more about how the weak economy affects his restaurants and concert business than new competitors.

Folgner previously filed for bankruptcy protection in 1985. He blamed that Chapter 11 filing on the high costs of business expansions and a restaurant fire in 1980 at his Villa Mexican Restaurant that left him with more than $600,000 in uninsured losses.

The bankruptcy was discharged in 1987. Folgner said he plans to separately incorporate the Coach House, the Ventura Theatre and the Villa Mexican Restaurant.

“If I had done that several years ago, I wouldn’t be in this situation,” he said. “I’m not the shrewdest businessman.”