East Idaho News
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Shilo Inn closure throws Idaho Falls restaurant, employees and events into limbo
Posted
April 30, 2026
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3:11Now Playing#eastidahonews #suddenclosure #liquidation #bankruptcy
IDAHO FALLS – David Rail was surprised with the news Tuesday morning that the building that houses his business was closing.
Rail owns Trofi, a Mediterranean restaurant inside the Shilo Inn at 780 Lindsay Boulevard in Idaho Falls.
In a conversation with EastIdahoNews.com, Rail says he got a call from hotel manager Kirk Hansen on Tuesday morning informing him that two people from the U.S. Bankruptcy Court were there to shut down the hotel.
The hotel filed for Chapter 11 bankruptcy in 2020. Its registered agent, according to the Idaho Secretary of State’s website, is Cogency Global Inc. The parent company is Shilo Management Corporation.
Hansen declined to comment on the situation, but a court order dated April 24 shows that the case is now being converted to Chapter 7 bankruptcy, and that the estate and all its assets are being liquidated.
Although Rail and his wife were aware of the previous Chapter 11 filing, he says the current order came without warning and took them by surprise.
When he arrived at work that morning, Rail says the hotel staff were terminated and kicked out of the hotel. The building and all the businesses inside were immediately shut down.
Rail says it puts him and his wife in an uncomfortable position.
“We can’t operate the restaurant or the Flying Goose lounge next door because the only way to access those is through the hotel lobby,” Rail says.
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