Florida financial firm sues Pihakis, business partners for more than $700,000 in unpaid loans

A Florida-based financial firm has initiated legal action against Nick Pihakis and his business partners, seeking to recover more than $700,000 in unpaid loans. The lawsuit, filed late Thursday in Shelby County Circuit Court, targets restaurants formerly associated with the Pihakis Restaurant Group and individuals involved in their business operations.

Mounting Financial Pressure

This new filing adds to an increasingly difficult period for the restaurant group. Since April, the total value of lawsuits and liens pending against the Pihakis Restaurant Group has climbed past $14.7 million.

The lawsuit identifies several high-profile defendants, including Pihakis himself, investor Mike Mouron, and executive chefs Rita Bernhardt of Salice (formerly Luca Lagotto) and Joshua Gentry of Little Donkey. The complaint also names various limited liability corporations linked to shuttered locations across Alabama, Georgia, and South Carolina, including establishments like Rodney Scott’s BBQ and Hero Doughnuts.

Disputed Agreements

At the heart of the litigation are two future receivables sale and purchase agreements—financial arrangements where companies receive working capital in exchange for a slice of future sales. According to the court documents, the firm Fox Funding Group provided a $200,000 loan last November, followed by a $500,000 loan in mid-December.

The plaintiff alleges that when more than a dozen Pihakis-affiliated restaurants began closing in mid-April, ownership of locations like Salice and Little Donkey shifted to a group including Mouron, Bernhardt, and Gentry. The suit characterizes these transfers as not being “arm’s-length transactions,” noting that the restaurants continued operations at their original sites despite the ownership changes.

The total sought by Fox Funding amounts to $718,716.05, covering the unpaid balances on the contracts alongside significant attorney fees. The suit alleges breach of contract and breach of guaranty.

A Pattern of Legal Disputes

The Pihakis Restaurant Group is currently contending with a heavy load of legal hurdles, including three separate lawsuits and developer liens that collectively exceed $12.6 million. You can view more about the group's full list of restaurants here.

Legal scrutiny is intensifying elsewhere, too. Lawyers for a meat company recently requested a default judgment in their own $394,000 lawsuit, citing a lack of response from the restaurant group.

Furthermore, the group is facing real estate consequences. Last week, a Jefferson County judge ruled in favor of an eviction lawsuit regarding property at 101 12th St. S., with the judge allowing 101 Parkside to take possession of the site following an appeal window.