Starland Holdings Inc. files for bankruptcy protection

STARLAND, Ill.

— Starland Holdings, the Chicago-based maker of premium card brands, filed for Chapter 11 protection Wednesday.

The Chicago-headquartered company said it would sell assets and consolidate operations and reduce expenses.

The filing comes after Starland’s stock sank more than 8% Thursday on worries about a drop in the stock market.

It also comes as the company is under fire for using taxpayer dollars to fund a $250 million renovation at a Chicago hotel where Starland once employed more than 1,000 workers.

Starland also filed for bankruptcy in 2012 and 2011.

In those cases, the company agreed to buy back stock from the U.S. government.

Starlands bankruptcy filing does not change its stock price, but it does give the company a chance to reduce its debt burden and reduce costs.