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uxUrban Hotels has entered liquidation, ending its attempt to build a boutique chain in New York. The company’s Chapter 11 filing was converted to Chapter 7 last week after federal officials cited “gross negligence” and mismanagement. Control now passes to an independent trustee, a swift collapse for a firm that once claimed it could rival Marriott and Hilton. LuxUrban filed for bankruptcy after abruptly closing leased properties such as The Herald and The Tuscany, yet continued to accept online reservations, leaving guests to find locked doors and empty lobbies. Trustee Kenneth Silverman set a December meeting with over 400 creditors owed about $123.6 million, nearly $119 million of which are unpaid New York state taxes. Silverman’s filing noted “no property appears to be available to pay creditors.” Former chair Elan Blutinger filed a $214 k claim for unpaid loans. Founder Brian Ferdinand and other executives face a class‑action fraud suit. Landlords sued to evict LuxUrban from all four Manhattan leases, and The Herald at 960 Sixth Ave is now under foreclosure. Lender Aareal Capital showed photos of garbage‑filled hallways. LuxUrban’s counsel accepted the liquidation order, acknowledging no recoverable assets.