Doughnut, diner, and restaurant chain owner files Chapter 7

A Chapter 7 bankruptcy mostly involves liquidation, but it doesn't needfully mean the extremity of the businesses oregon brands connected to the idiosyncratic oregon concern who filed.

Big Lots, for example, filed for Chapter 7 bankruptcy and was liquidated, but immoderate of its stores and the close to usage its sanction were sold to Variety Wholesalers. That transaction gave Variety Wholesalers the close to reopen betwixt a 4th and fractional of the chain's astir 800 stores.

In galore cases, however, successful a Chapter 7 filing, the brands spell away. When it comes to Nick Pihakis, who owns Pihakis Restaurant Group, it's unclear whether immoderate of his company's galore restaurants, immoderate of which person already closed, volition survive.

The lawsuit was filed by Pihakis individually, not by Pihakis Restaurant Group oregon immoderate affiliated LLCs. Huntsville lawyer Kevin Heard of Heard Ary & Dauro is representing Pihakis.

Pihakis has heavy fiscal problems

Pihakis has a agelong database of creditors that has gotten longer since TheStreet past reported connected his concern successful May.

"Newly filed Chapter 7 bankruptcy records place astir 50 creditors claiming much than $44 million, offering the clearest representation yet of the fiscal fallout tied to the restaurateur's concern empire," Birmingham Business Journal reported.

The filing, made Aug. 6 successful the U.S. Bankruptcy Court for the Northern District of Alabama, lists astir $10.6 cardinal successful assets against $44.03 cardinal successful liabilities. Pihakis estimated funds would beryllium disposable for organisation to unsecured creditors done the liquidation process.

The papers listed 14 idiosyncratic loans totaling much than $23.5 million, including loans of $9 cardinal and $3.9 million.

"Several of the debts are already the taxable of much than a twelve lawsuits successful Alabama and South Carolina seeking much than $23.4 cardinal successful unpaid bills. The filing besides shows that Pihakis faces lawsuits of unlisted amounts successful different states arsenic well: 2 successful Monroe County, N.Y., 2 successful Fulton County, Ga., 1 successful Fayette County, Ga., and a suit successful Atlanta Municipal Court implicit concern licence renewals which has been concluded, according to documents," AL.com reported.

Pihakis Restaurant Group has closed restaurants

Birmingham-based Pihakis Restaurant Group (PRG), which includes restaurants successful Atlanta, faces $13.7 cardinal successful lawsuits and liens, TheStreet reported successful May. It remains unclear which liabilities are guaranteed by Pihakis himself, and which are solely tied to the company.

The chain, which operates a assortment of concepts, including Little Donkey Mexican Restaurant, Rodney Scott's BBQ, Hero, Magnolia Point, and Psito, has already closed a fig of locations.