Pihakis faces more than $8 million in new lawsuits over shuttered restaurants

PRG was already navigating lawsuits totaling more than $1 million for unpaid bills and liens topping more than $14.7 million.

Pihakis faces more than $8 million in new lawsuits over shuttered restaurants

The legal pressure on Pihakis Restaurant Group (PRG) continues to mount as a new wave of lawsuits filed this week seeks more than $8 million from the struggling hospitality company. These latest actions follow a series of restaurant closures that began in April, affecting locations across both Shelby and Jefferson counties.

Major Litigation at Valley Post

The most significant of the new complaints was filed in Shelby County Circuit Court by Dunnavant Valley Dining. The lawsuit alleges that PRG Valley Post defaulted on a long-term lease for four buildings at Valley Post, located off Dunnavant Valley Road. The claim seeks roughly $7.35 million in damages, citing an absence of rent payments dating back to the development's opening in December 2025.

The Valley Post site previously served as the home for Hero Diner, Luca & Lucy, Little Donkey, and Rodney Scott BBQ. Developer Mike Mouron is pursuing these damages in addition to existing liens already placed on the property.

Ongoing Financial Struggles

Before this week's filings, the Pihakis Restaurant Group was already working through lawsuits exceeding $1 million for unpaid bills, alongside developer liens in two counties totaling more than $14.7 million.

Additional filings in Jefferson County Circuit Court this week include:

  • Third Avenue South LLC is seeking $589,062 for unpaid rent, equipment costs, and legal fees, with reports indicating rent payments ceased in January.
  • MAM Investments has filed for $145,379 in unpaid rent regarding the Little Donkey brand.

Additional Legal Challenges

Earlier in June, a Florida-based firm sued the Pihakis Group and business partners at three formerly owned restaurants for more than $700,000. Meanwhile, legal counsel for a meat company is pushing for a default judgment in a $394,238.73 lawsuit, noting the absence of responses from the company over the past month.

The company has also faced an eviction lawsuit regarding its office space at 101 12th St. S. Despite the broad corporate fallout, three restaurants associated with the group are reportedly continuing operations under new ownership.