The president of Caney Fork Restaurants says the Columbus location may return.
Marc Barhonovich shed additional light Tuesday on the ongoing legal battle between Caney Fork”s parent company, Restaurant Acquisition Group, and Spirit Finance, the lease holder of eight Caney Fork locations.
Barhonovich said Caney Fork leased eight locations throughout the Southeast, including locations in Columbus, Tupelo and Leeds, Ala., along with restaurant equipment such as ovens and freezers from Spirit Finance. Equipment was already on site at the Columbus, Tupelo and Leeds locations after Santa Fe Cattle Co. restaurants vacated those locations, but Spirit refused to provide equipment for the remaining five locations, according to Barhonovich.
“They”re putting us in a position where they”re basically bankrupting us. You can”t pay the upkeep and costs on eight locations and only have three open,” he said.
Barhonovich stated Caney Fork and Spirit Finance will appear in court in six weeks to plead their cases before a judge.
Sean Hufford, vice president of portfolio management for Spirit Capital Management LLC, declined to address specific details of the pending litigation, but said Spirit was “both surprised and disappointed to learn that (the Columbus) location or any others are closed.”
If the judge”s ruling favors Caney Fork, Barhonovich says the restaurant will seek damages for lost operating costs due to the closings in addition to the promised equipment. At that point, he says, the three closed locations may reopen.
“Our case is black and white. It”s what the judge sees as damages that”s going to be key. It”s literally fraud,” he said.
Caney Fork employed approximately 200 workers at its three formerly operating locations and plans to bring those employees back if possible. The original Caney Fork restaurant in Nashville, Tenn., remains in operation.
Jason Browne was previously a reporter for The Dispatch.
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