The Hartford Club formally has begun soliciting $2 million from investors to help pay off its debts, including a defaulted mortgage that landed its historical 46 Prospect St. home in foreclosure last year, according to documents filed with the U.S. Securities & Exchange Commission.
The Hartford Club’s fundraising arm — the 1873 Group, named after the club’s founding year — filed paperwork with the SEC Jan. 7 saying it was seeking $2 million from investors in exchange for an equity stake in the organization. Former Hartford Club President Larry Brown is serving as the managing member of the 1873 Group.
Brown first proposed the idea of raising capital from Hartford Club members in 2013 as a way to relieve the organization of $1.4 million it owed Berkshire Bank for its property. At the time, the club was seeking $1 million through member investments to payoff the Berkshire debt.
After not making mortgage payments for 18 months, the club’s Prospect Street home landed in foreclosure. There was a foreclosure sale date scheduled for June 28, 2014, but the club appealed that decision, which remains pending. Since then, Hartford Club has been trying to negotiate with Berkshire Bank and raise money from its members. The filing with the SEC is the formal declaration that the club is seeking investor money.
Brown declined to be interviewed for this story, but said in an email the process of getting 1873 Group established was more complex than initially thought, which is why the SEC filing came more than a year after he proposed paying off the bank debts through member contributions.
Brown also said discussions with Berkshire Bank are progressing, and he claimed December was a good revenue month for the club thanks to its events business.
— Brad Kane
