Ghost Ship warehouse owners file for bankruptcy in settlement over deadly fire

The Ng family will liquidate assets to pay $11M to survivors and families of victims in 2016 blaze

The remains of the Ghost Ship warehouse after the 2016 fire (Getty)
The remains of the Ghost Ship warehouse after the 2016 fire (Getty)

Almost five years after a fire destroyed the Ghost Ship warehouse, killing 36 people, the property’s owners are taking steps to bring the saga to a close.

The Ng family, which purchased the building in 1988, filed for bankruptcy in April. The filing includes plans for the Ngs to liquidate their assets to pay more than $11 million to the survivors of the blaze and the families of those who were killed, Oaklandside reported.

Investigations into the cause of the Dec. 2, 2016 fire were inconclusive, but Oakland fire officials have said it was electrical in nature. The nearly 10,000-square foot building, an aging warehouse that was converted into an artist collective, was hosting a concert the night of the fire.

The Ng family owned multiple properties near the warehouse at 31st Avenue and International Boulevard and reportedly shared power between the buildings, using holes cut into walls and multiple extension cords. On top of the dangerous wiring, the warehouse, which was not zoned for residential use, held several living spaces.

The Ng family was reportedly aware of the poor electrical conditions of the building and even hired an unlicensed electrician to install a transformer on the property. An invoice from a contractor also informed the Ngs about a small fire in 2014 that was likely a result of the power system being “catastrophically” overloaded.

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While the Ngs were never criminally charged, master tenant and landlord Derick Almena and his assistant, Max Harris, were found to have negotiated leases and accepted rent from tenants. Both Almena and Harris pled no contest to 36 counts of involuntary manslaughter in 2018.

Approximately 80 survivors and families of the victims sued the Ng family, the city of Oakland, PG&E, Almena and party promoters for contributing to the fire.

The city of Oakland and PG&E reached settlement agreements with the plaintiffs. Once the Ngs file for bankruptcy, the family will put $6 million into a trust for the victims and make an initial payment of $1 million. The remaining money owed will come from the proceeds of the sale of their properties, including the Ghost Ship warehouse.

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[Oaklandside] — Victoria Pruitt