Pihakis Restaurant Group faces lawsuit, $12 million in liens amid closures

BIRMINGHAM, Ala. (WBRC) - A meat and seafood supplier has filed a lawsuit against a troubled restaurant group, alleging breach of contract and claiming it is owed nearly $400,000.

Evans Meats, Inc. filed the complaint on April 27, in the Shelby County Circuit Court against several restaurants affiliated with the Pihakis Restaurant Group and Nick Pihakis, Sr.

The supplier claims the large group of restaurants, some of which are temporarily closed, owe hundreds of thousands of dollars for food already received.

Pihakis is named because he personally promised that these bills would be paid, according to the lawsuit.

The overall debt owed as of April 23, is $394,238.74, according to the lawsuit, and includes outstanding invoices plus interest, cost of collection, including attorneys’ fees.

Pihakis Restaurant Group is also facing liens, a legal claim or encumbrance placed on a property to secure payment of a debt. As of Wednesday, April 29, the liens are totaling more than $12 million, according to public records filed in Jefferson and Shelby counties.

On Tuesday, April 28, WBRC reported the group was facing over $8 million in liens.

Luca in Homewood has highest unpaid bill

The supplier claims Luca in Homewood has the highest unpaid bill at $82,719, with Luca Valley Post’s debt at $43,910.04.

Tasty Town, which abruptly closed on April 12, owes Evans Meats, Inc. $39,724.98, according to the lawsuit. Hero Trace Crossings is also permanently closed and is alleged to owe $1,877.50.

The other restaurants named include:

• Hero Homewood
• Hero Montgomery
• Hero Parkside
• Hero Summerhill
• Hero Trussville
• Hero Two-Ten
• Hero Valley Post
• Little Donkey Homewood
• Little Donkey Downtown Montgomery
• Little Donkey Valley Post
• Psito
• Rodney Scott’s Atlanta
• Rodney Scott’s Homewood
• Rodney Scott’s Trussville
• Rodney Scott’s Valley Post

Below outlines the funds Evans Meats, Inc. claims it is owed, and the current status of the restaurant.

This table was updated on Thursday, April 30 to reflect recent closures.

Restaurant group working with consultant

This lawsuit comes as Pihakis Restaurant Group is working with a consultant to create “more sustainable operations across our brands.”

A statement shared with WBRC on April 17 explaining the process said, “Following our announcement of the permanent closure of Tasty Town Greek Restaurant and Lounge in Birmingham and Hero in Hoover, we want to provide an update as we continue to work through organizing our brands and locations to ensure sustainability. We have engaged consulting support and are focused on doing the hard, careful work required to build a path forward—one that honors our employees, our guests, and the excellent family of restaurants that make up Pihakis Restaurant Group.”

The statement said some restaurants may experience temporary pauses in service as part of the process.

The statement said some restaurants may experience temporary pauses in service as part of the process.

Every Hero location is now temporarily closed, according to Hero’s website. Rodney Scott’s Trussville, Homewood and Valley Post, Little Donkey Valley Post and Homewood, and Luca & Lucy are also temporarily closed, according to their websites.

Developer filed liens against restaurant locations

Commercial real estate developer Michael Mouron owns and leases several properties to Pihakis Restaurant Group and its affiliated entities and filed liens on April 14 against eight of those locations, claiming the group has failed to pay rent. He has since filed amendments to those liens.

A $72,065.56 lien originally filed against 1726, 1722, and 1720 28th Avenue South, where Hero Homewood and Luca Lagotto are located, has been amended to $2,708,365.56.

The lien filed against Rodney Scott’s Homewood for $36,090.50 has been amended to $803,856.51, and the lien against Little Donkey Homewood has been amended to $803,856.51. It was originally filed for $31,042.98.

A lien filed against Pihakis Restaurant Group for four properties on 3rd Avenue South in Birmingham, where Joyland is located, was amended on April 27 to $1,075,983.64.

As landlord, Mouron is claiming a lien against each locations’ goods, furniture, equipment, and effects.

Mouron also owns the Dunnavant Valley development in Chelsea, where Pihakis Restaurant Group recently opened Hero Diner, Little Donkey, Luca & Lucy and Rodney Scott’s BBQ.

In an amended lien for these properties filed on April 27, Mouron is seeking to “secure an indebtedness of $7,166,296.20, plus reasonable attorney’s fees and other expenses for rent due under the said leases.”

Following the temporary closure of this development, Chelsea Mayor Cody Sumners shared the following statement with WBRC:

Sumners also said, “Chelsea has worked hard to create an environment where businesses can grow and succeed, and we remain confident in the long-term strength and resilience of our local economy. Our focus continues to be on supporting our business community and ensuring that this space remains a vibrant part of our city moving forward. We are hopeful for a positive resolution and still look forward to a bright future for our community.”

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