The owners of Nashville hot chicken chain Party Fowl are being sued by Regions Bank for failure to repay loans that they received in 2021.
These loans were specifically used for the Donelson and Murfreesboro locations. The lawsuit comes in the wake of the restaurant owners filing for bankruptcy protection to restructure the hot chicken chain's heavy debt loan earlier this year . Court records showed the restaurants had as much as $10 million in debt and less than $50,000 in assets.
Who owns Party Fowl?
Tennessee natives Austin Smith and Nick Jacobson co-own the popular hot chicken chain. According to the restaurant's website , the pair opened Party Fowl in 2014 after spending years in the restaurant industry.
When did the Murfreesboro and Donelson locations of Party Fowl open?
Party Fowl Murfreesboro opened in 2017 while the Donelson location opened in 2018.
How much money did Party Fowl get from Regions Bank?
According to the lawsuit filed July 29 in Davidson County Chancery Court , Party Fowl Donelson received two promissory notes for the amounts of $1,645,000 and $250,000 on March 8, 2021. The loans' original due date to be paid in full was Aug. 8, 2021.
A loan modification agreement was executed on May 25, 2022 with the maturity date extended to Nov. 15, 2022. Party Fowl Donelson received an additional extension until Jan. 2023 but, the bank expresses they never received any payment.
Party Fowl Murfreesboro also received a promissory note on March 8, 2021, in the original principal amount of $700,000. The loan matured on Aug. 8 and received a payment extension that was set for May 25, 2022 and extended again to November 15, 2022.
According to the Regions Bank lawsuit: “The Murfreesboro Note matured on Nov. 15, 2023, and the Defendants are liable for the amounts due thereunder.”
Despite the bank making payment demands in December 2023 to both Jacobson and Smith, payments have not been made.
In January 2024 , both parties sought to declare Chapter 11 bankruptcy but did not dispute loan liability.
"It is no secret that the last few years have been a challenge for individuals and businesses of all shapes and sizes," Smith told The Tennessean in January. "We are grateful that there are opportunities, like Chapter 11, that can allow us to move in a positive direction. Our teams have been made aware of where we are and where we are going. Once this snow melts, we’d love to see you. We hope to be a part of our communities for many years to come."
How much does Party Fowl owe to Region Bank?
In total, Party Fowl owes a combined sum of $2.5 Million including the principal loan amount, interest and late fees.
Regions Bank is asking that they are granted a money judgment against the defendants.
How many Party Fowl locations are there? Are they still open?
At one point the popular chain had six locations: Five in Tennessee and one in Destin, Fla. The Chattanooga and Destin locations closed earlier this year. In addition to the following remaining locations, Party Fowl operates concessions at Nissan Stadium and the Nashville airport.
This article originally appeared on Nashville Tennessean: Nashville hot chicken chain Party Fowl sued for not paying back loans. How much do the restaurants owe?
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