The Historic Holbrooke Hotel and Restaurant in Grass Valley is once again on the brink of closing its doors. Owners of the Holbrooke are in default on their $1.2 million dollar loan issued by Citizens Bank, and a foreclosure sale has been published for Monday August 23 on the steps on the Nevada City Courthouse. Holbrooke co-owner, Jim O'Brien says two management companies have walked away from the Holbrooke in the past 16 months, the most recent, Atlantic First Holdings Company out of New York. They packed up and disappeared the day after Christmas 2009. “That was sad all the way around and left us pretty deep in the hole. They didn't pay the bills or the employees, so we took it back and tried to revive it.”
 

Business had dropped off 30 percent but O'Brien says most of the employees stayed with them and they are starting to see a turnaround. “In fact what's happening now is the business has begun to turn around. We have hired a new chef and that has made a huge difference. The business is beginning to revive itself. This is a good month.”
 

The current owners paid $2.5 million to buy the Holbrooke in 2005.  The hotel and restaurant are currently on the market for $1.4 million. “Anybody looking at it now, different from last year might say, this is a pretty good business, because things are starting to come around and the price is fantastic.”

O'Brien also says he has been talking with two interested parties on a potential sale of the Holbrooke and they are both from the area.