Worcester's Mercantile Center in 2018. Courtesy photo / File
The developer of Worcester’s Mercantile Center and other high-profile projects has filed for Chapter 7 bankruptcy, listing nearly $1.7 million in debts from lenders, investors and other sources.
Charles “Chip” Norton is best-known for his redevelopment of the Mercantile Center property, a pair of office towers totaling 646,000 square feet on Front Street in downtown Worcester. In 2018, the project received $75 million in debt financing from four lenders, and $15 million in equity from local investors.
Norton’s Wellesley-based Franklin Realty Advisors has been the highest-profile commercial developer in Worcester and surrounding communities in the past decade. Its properties also include the Southbridge Innovation Center, a former American Optical Co. factory that was updated into a 1.2 million square-foot complex leased to office, industrial tenants and Quinsigamond Community College classrooms.
Other projects include the Wellsworth Hotel and Conference Center on the Southbridge campus and the 250,000 square-foot Worcester Business Center office building.
The bankruptcy filing lists eight pending lawsuits against Norton from businesses, including Cornerstone Bank, Lauring Enterprises, Lauring Construction, Comprehensive Merchant Capital and Purple Tree Funding. The nature of the disputes includes loan guarantees and unpaid construction contracts.
The claims include $67 million in loans from Country Bank toward the Front Street properties, which included personal guarantees, according to a report in the Worcester Business Journal which first reported the bankruptcy filing.
Creditors listed in the bankruptcy filing include Rockland Trust Co., MassDevelopment, WebsterFive, Cornerstone Bank, Savers Bank, Middlesex Savings Bank, Lauring Construction, the Downtown Worcester Business Improvement District, Square Funding LLC of Brooklyn, New York and Apollo Funding of Pomona, New York.
The case is being heard in U.S. Bankruptcy Court in Boston.
Worcester-based Lauring Construction filed a lawsuit against Franklin Realty Advisors in May, related to alleged unpaid work related to renovations of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives offices in Mercantile Center.
The construction company has performed approximately 18 projects for Franklin Realty Advisors, according to the civil complaint filed in Worcester Superior Court.
Franklin Realty Advisors has only paid $73,077 of the $400,477 contract for the ATF offices, the complaint states.
“On May 9, 2025, Chip Norton called Lauring Construction to apologize to its president, John Lauring, for abusing Lauring Construction’s trust in Franklin Realty and for the situation with the ATF project. John Lauring asked Norton whether Franklin Realty would pay the outstanding amounts owed, but Norton refused to answer,” according to the complaint.
After an investigation, Lauring Construction “learned that Franklin Realty has cross-collateralized its financing in violation of its debt covenants or obligations,” the complaint states.
Also in May, Cornerstone Bank filed a lawsuit against Norton in Worcester Superior Court, alleging a fraudulent transfer of a residence at 157 Centre St. in Dover.
Franklin Realty received $857,500 in financing from Cornerstone Bank in 2020, the complaint states, and the note was increased to $1.6 million in 2023.
Franklin Realty defaulted on the property after failing to make a March 30 payment, according to the complaint. Chip and Jane Norton previously held title to the property but transferred ownership on April 20 to Jane Norton for $1.
On April 20, the property was sold for $1 to Jane Norton without prior written consent of the bank, according to the lawsuit which alleges breach of guarantee and fraudulent transfer of property.
In June, Worcester-based Lauring Enterprises filed a civil suit against Norton in Worcester Superior Court. According to the complaint, Lauring Enterprises invested $250,000 for an 18.5 percent ownership interest in the Southbridge property in 2023. Southbridge has failed to make payments under the agreement, according to the lawsuit which claims breach of contract.
Norton is represented in the bankruptcy case by attorney Herbert Weinberg of North Andover-based Rosenberg & Weinberg. Weinberg has agreed to be paid $20,600 for his work on the case, according to a court filing.
Messages were left with Norton and Weinberg seeking comment.
Norton graduated from University of New Hampshire in 1977 and founded Carisbrooke Construction Co. and Homes/Newton Realty Trust early in his career with a focus on redeveloping historical residential homes, according to Franklin Realty Advisors’ web site. He founded Franklin Realty Advisors in 2000.
