COLORADO SPRINGS, Colo. (KKTV) - About 500 items are set to be auctioned off from inside three Borriello Brothers pizza chains to make up for more than $120,000 the business did not pay in state sales tax.
The auction was set to start at 8:30 a.m. Thursday at the location on Eighth Street. The doors will open at 8 a.m. so people can take a look at the items before the bidding starts. The auction for the Powers location was set to start at 1:30 p.m. Thursday, and the Fountain location is set for auction at 8:30 a.m. on Friday with doors opening at 8 a.m.
“These restaurants are very clean compared to some of the ones that we’ve sold in the past. So the equipment is in good shape. It’s been well-maintained. Everything here is in good condition. So if somebody wants to start a business, there is plenty of opportunity here to get a starter kit,” said Rich Schur, the owner and lead auctioneer of Schur Success Group.
The Colorado Department of Revenue seized three locations earlier this year for failure to pay taxes. Schur Success Group, based in Monument, said it won the bid from the state to auction off the three locations.
“The beauty of being an auctioneer is I can talk pretty quick, and we’ll move through it fairly quickly,” Schur said.
He said each auction will be treated separately. At the beginning of each, he’ll ask for what’s known as a “bulk bid”, or a bid to establish a set price level for all the items inside the store. Then, they’ll auction off the items individually, and whichever makes the most money is how they’ll sell the items.
“If we don’t make enough selling everything individually to pass the bulk bid, well then that first bulk bidder gets it all, but if we pass that number, the bulk bid goes away and the individual bidders then win,” Schur said.
Everything inside the restaurant from tables and chairs to pizza ovens and pizza boxes and even the sports memorabilia on the walls will be sold.
“We’re going to see pizza restaurant owners. We’re going to see other restaurant owners looking for specific pieces of equipment,” Schur said. “We’ll see resellers who are going to take the equipment, clean it up and then resell it for profit, and then because of the history here with this particular company, we’re going to see fans of the restaurant come in and want to take pieces as souvenirs.”
All the auctions are “live” auctions, so nothing will be sold online. Everything has to be bought in person.
Schur said the Eighth Street location is the largest, with about 220 items. Both the Powers and Fountain locations have about 120 items each.
“We’re looking forward to the challenge. I’ve never sold three restaurants in two days. But to us, it’s just yet another auction,” Schur said.
The business owners technically have until the start of the auction on Thursday to pay off their taxes and call off the auction, but Schur said doesn’t see that happening.
“The state seizes restaurants pretty much only when they have to. They have a very good track record of working with the owners. They’ll set up payment plans. They’ll negotiate. When they get to the point of seizing a business and sending it to auction, they’ve exhausted every chance they had,” Schur said. “In this particular case, I think the tax bill was just so great there was no recovery.”