The Nashville-based owner of Amerigo, a casual Italian restaurant chain, has been hit by a lawsuit in federal court that claims the company failed to pay back millions of dollars in loans.
Nashville-based Vivid Restaurant Concepts owes more than $8.5 million, according to the suit filed in U.S. District Court in Nashville by General Electric Capital Corp.
Vivid owns six Amerigo locations in three states and a steakhouse that goes by the name of Char in Mississippi.
The suit claims that Vivid defaulted on loan agreements dating to 2006 and 2007 that provided financing to buy those seven restaurants, including Amerigo locations on West End Avenue and in Brentwood, the lawsuit says.
The restaurant company has been hurt by declining revenues and wasn't able to meet its monthly loan payments, according to General Electric Capital Corp.'s lawsuit. It said Vivid did not respond to a demand letter asking for $154,079 in November, according to the suit.
Vivid said in a statement it is working to restructure the terms of the loan.
"This in no way affects daily operations of any of our restaurants," Vivid said, adding that no stores will be closed.
Vivid is led by the company's president and CEO, David R. Blackburn, a former O'Charley's Inc. regional vice president.
Blackburn and a New York-based private equity firm bought the restaurants from the founders of Amerigo and Char in 2007. General Electric Capital Corp.'s suit seeks more than $8.5 million along with interest, late fees and other costs plus attorneys' fees.
The company said it wants the court to appoint Kevin T. O'Halloran of Newbridge Management LLC as a receiver managing and operating the properties.
Despite slowdown, banks are still lending
Washington Report: Modifying Loan Terms
Investor Report: Diversify in Mexico
