W
ORCESTER ― Charles "Chip" F. Norton Jr., a prominent real estate investor in the city, has filed for Chapter 7 bankruptcy amidst lawsuits alleging unpaid debts. Norton, who filed for bankruptcy on June 23, owned several downtown Worcester buildings, including the Mercantile Center at 100 and 120 Front St., as well as the Wellsworth Center in Southbridge.
Chapter 7 bankruptcy involves selling a debtor's non-exempt property to distribute proceeds to creditors. The filing followed lawsuits from Cornerstone Bank and two other companies based in Worcester, one of which is managed by John P. Lauring. Franklin Realty LLC, Norton's company, has been replaced by Eastport Real Estate after managing the Front St. buildings.
Norton released a statement through his spokesperson, Tyler K. Skenderian, highlighting his contributions to Worcester's growth and redevelopment efforts. However, he did not address the bankruptcy or lawsuits. The statement noted that Norton had invested over $200 million in Central Massachusetts and downtown areas since 1992.
Lauring and his son Michael Lauring filed a lawsuit on June 5, alleging that Norton's handling company failed to make return investment payments for their $250,000 stake in the Southbridge Hotel and Conference Center. Cornerstone Bank filed another lawsuit on May 9, claiming Norton missed loan payments and sold properties at below market value.
The bank alleges that Norton transferred these properties to his wife during divorce proceedings, with the intent to hinder creditors. The lawsuit seeks to reverse this transfer and recover damages due to "fraudulent" transfers. As a key real estate investor in Worcester, Norton's dealings date back to the late 1980s, including redeveloping the former American Optical Co. property into the Southbridge Hotel & Conference Center.
Norton was also part of a group that developed One Chestnut Place and invested heavily in other projects, such as the Worcester Business Center and the Mercantile Center. His work earned him the 2019 Robert S. Bowditch Economic Development Award from the Worcester Business Development Corp.
