Candidate addresses bankruptcy
Jeff Selle | Hagadone News Network | UPDATED 11 years, 8 months AGO
COEUR d'ALENE - Only one day into his Coeur d'Alene City Council campaign and Jared Festner is learning how hard politics can be in today's digital age - but he knew it was coming.
"I am actually glad this came out on the first day of my campaign," he said. "Hopefully I can explain it and kill it right now."
Festner filed his campaign paperwork on Tuesday for Councilman Mike Kennedy's open council seat. He is now running against Amy Evans for that seat.
On Wednesday, the rumors started flying on the Internet about his failed business ventures in Las Vegas and Phoenix, and a $4.8 million bankruptcy he filed last year.
"My dad always told me it takes a lifetime to build a reputation, but only a moment to destroy one," he said.
In Las Vegas, Festner said he owned several Anytime Fitness Clubs and sold them. The new owner of two of those clubs defaulted on the leases, Festner said and because he and his partner originally signed the leases, they were sued.
"But the lawsuits never went anywhere," he said. "That company lost interest and they just kind of fizzled out."
Festner and his partner took the money they earned in Las Vegas and bought a larger fitness business in the Phoenix area. The company included three fitness clubs, he said.
"In 2009, when the economy went bad, like many other health clubs we went down."
He said memberships took a severe drop and his rent was escalating, so they sold off their membership contracts to a fitness club about a mile away and some of his customers got upset.
"One of our members was a news reporter and they took the story and ran with it," he said. "I was a business owner and we had some businesses that failed."
As that was unfolding, Festner became a co-owner in two Babes Sports Bar and Grills in Scottsdale and Gilbert, Ariz.
"I just turned over my interest in those and walked away," Festner said. "I am not a restaurant guy."
After walking away from the restaurants, Festner moved to Coeur d'Alene and decided to go back to school.
He said he had to file a personal and business bankruptcy last year on about $4.8 million in debts.
"It's unfortunate with the Internet how people can say anything they want about you," he said. "It took so long to get these businesses up and running, but none of that comes out."
Festner said that with all of the other issues facing the community, he is hoping people will get past his personal and business issues and refocus on the elections ahead.
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