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U.S. Hotel Staffing Company Files for Bankruptcy, Seeks Sale

Reuters (10/24/13) Tom Hals

Atlanta-based Hospitality Staffing Solutions Group LLC has filed for Chapter 11 bankruptcy and will hold a court-supervised auction of its businesses. The large U.S. provider of housekeeping staff for hotels was acquired by Frontenac Co. for $80 million in 2010 and shortly after encountered problems with employee verification and other operational issues that—coupled with increased competition and the sluggish economic recovery—strained the company’s finances. Nine of its Hospital Staffing affiliates also filed for bankruptcy.