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

A Florida financial firm is taking legal action against Nick Pihakis and his business partners, seeking more than $700,000 in unpaid loans. Fox Funding Group, based in Hollywood, Florida, filed the lawsuit in Shelby County Circuit Court late Thursday, marking another significant financial hurdle for the Pihakis Restaurant Group.

Growing Legal Pressure

This recent filing pushes the total value of lawsuits and liens currently pending against the Pihakis Restaurant Group to over $14.7 million since April. The new complaint names Pihakis, investor Mike Mouron, and executive chefs Rita Bernhardt of Salice (formerly Luca Lagotto) and Joshua Gentry of Little Donkey as defendants.

The lawsuit also targets the individual limited liability companies behind several now-closed restaurants across Alabama, Georgia, and South Carolina, including locations that formerly operated under brands like Rodney Scott’s BBQ, Little Donkey, and Hero Doughnuts. For more context on previous struggles, check out this report on efforts to save Homewood restaurants.

Inside the Agreements

According to the court filings, the dispute centers on two separate future receivables sale and purchase agreements. These arrangements are designed to provide businesses with immediate working capital in exchange for a portion of future sales.

Fox Funding claims that in November, it provided the entities with a $200,000 loan to be repaid as $270,000. A second agreement in mid-December followed, involving a $500,000 loan in exchange for $695,000. Since those agreements were signed, over a dozen of the Pihakis-affiliated restaurants have shuttered.

The suit alleges that transfers of businesses like Salice and Little Donkey—which are now operating under a new group including Mouron, Bernhardt, and Gentry—were not arm’s-length transactions. The complaint notes that these establishments continue to operate at their original locations despite the transitions.

Financial Stakes

Fox Funding is suing for breach of contract and breach of guaranty, among other allegations. The firm claims it is owed $134,984 on the first contract plus $44,000 in fees, and $405,403.50 on the second, plus $134,000 in attorney fees, totaling more than $718,716.05.

The Pihakis Restaurant Group is currently facing multiple legal battles, including three lawsuits for unpaid bills and significant developer liens. Earlier this week, a separate meat supplier pushed for a court judgment in a $394,000 lawsuit, while Jefferson County District Judge Martha Reeves Cook recently issued a default judgment regarding an eviction at the group's former office space on 12th St. S. in Birmingham.

As the legal situation escalates, court records indicate that no attorney has been identified for Pihakis in this latest filing.