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Fairbanks Bounce House Business Deal Deflates Over Allegations of Missed Payments and Damaged Equipment

by Ivy

FAIRBANKS, Alaska (KTVF) – A business transaction in May involving the ownership of a Fairbanks bounce house company has taken a troubling turn, with allegations that the buyer, Tracy Gabrielsen of Aurora Fun Center in North Pole, deliberately damaged the equipment after defaulting on payment obligations.

Longtime owners of Romper Room, Gregory and LeDusta Whiteside, filed a lawsuit against Gabrielsen on October 1 in Fairbanks Civil Superior Court. The complaint stems from a $120,000 agreement that saw the Whitesides sell their inflatable business, which included 31 items such as bounce houses and an obstacle course, to Gabrielsen on May 21.

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Gabrielsen made an initial down payment of $30,000, agreeing to pay the remaining $90,000 over seven years at a 9% interest rate. However, the lawsuit claims that Gabrielsen has missed at least two payments of $1,448 since signing the agreement and failed to fulfill other contractual obligations, including obtaining liability insurance and settling pre-booked fees for the Tanana Valley State Fair.

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Records presented in court indicate that the Whitesides took out insurance for the equipment in August, costing $2,279 from Inland Marine. The contract stipulates that Vernam Inc., the parent company of Romper Room co-owned by the Whitesides, retains the note for the inventory since the sale was owner-financed. The agreement allows the Whitesides to secure insurance and charge Gabrielsen 1.5% interest if proof of insurance is not provided.

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The lawsuit suggests that Vernam Inc. requested the return of the Romper Room inventory due to Gabrielsen’s defaults, but when the Whitesides visited a storage facility on September 19 to retrieve the items, they discovered that some equipment had been “deliberately damaged by a knife.” According to the plaintiffs, 13 pieces of equipment require complete replacement.

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Court records include black-and-white photographs depicting inflatables with small tears, about one inch long, among other forms of damage. The Whitesides claim they incurred $6,200 in retrieval and cleaning fees to salvage the remaining inventory.

The plaintiffs suspect that Gabrielsen is retaining three additional pieces of equipment at her personal residence, although the complaint does not elaborate on this belief.

The lawsuit seeks a court order for Gabrielsen to return the equipment and requests a minimum of $100,000 in damages, with the exact amount to be determined by a jury at trial.

An attorney representing the Whitesides declined to comment, and multiple calls to the contact number for Romper Room went unanswered. Gabrielsen currently lacks legal representation in this case, and phone calls to Aurora Fun Center during business hours were not returned.

In addition to the inventory, the May deal transferred Romper Room’s social media accounts to Gabrielsen. A Facebook post on August 9 acknowledged the ownership change: “We’d like to let everyone know that Romper Room of Fairbanks has been under new ownership since May 2024, and we thank everyone for their support through all the years. We welcome the new owner and look forward to seeing where she takes things in the future.”

However, a subsequent post on August 10 stated, “Unfortunately, due to unforeseen circumstances, we will not be opening this weekend. Stay tuned for future events…” The lawsuit notes that the Whitesides first contacted Gabrielsen regarding outstanding invoices on August 7, purchased liability insurance on August 17, and informed Gabrielsen of the default on August 26.

In June, Aurora Fun Center, formerly known as Laser Tag/Go Karts of Alaska, announced the closure of its location off Badger Road and stated it was searching for a new site. Gabrielsen’s business registration with the Alaska Department of Commerce, Community, and Economic Development (DCCED) is dated May 22, 2024, the day following the sale agreement.

The Whitesides founded Romper Room, LLC in 2014, according to DCCED records.

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