Nick Pihakis files for Chapter 7 bankruptcy over $44 million in debt
Nick Pihakis filed Chapter 7 bankruptcy, listing more than $44 million in liabilities against about $10.6 million in assets, as reported by Yahoo Finance.
On 6 August 2026, Nick Pihakis filed a Chapter 7 bankruptcy petition in the U.S. Bankruptcy Court for the Northern District of Alabama. The filing lists approximately $10.6 million in assets against $44.03 million in liabilities, according to court documents. The case was brought by Pihakis personally, not by the Birmingham‑based Pihakis Restaurant Group or any affiliated LLCs.
Huntsville attorney Kevin Heard of Heard Ary & Dauro represents Pihakis. Court filings show that the debt is largely tied to personal guarantees on restaurant entities, real‑estate projects and investment companies, many of which have faced lawsuits from lenders, landlords and vendors.
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“Newly filed Chapter 7 bankruptcy records identify about 50 creditors claiming more than $44 million, offering the clearest picture yet of the financial fallout tied to the restaurateur’s business empire,” Birmingham Business Journal reported.
Several of the debts are already the subject of more than a dozen lawsuits in Alabama and South Carolina seeking more than $23.4 million in unpaid bills. The filing also shows that Pihakis faces lawsuits of unlisted amounts in other states, including two in Monroe County, N.Y.; two in Fulton County, Ga.; one in Fayette County, Ga.; and a lawsuit in Atlanta Municipal Court over business license renewals that has been concluded, according to documents.
Birmingham‑based Pihakis Restaurant Group (PRG), which includes restaurants in Atlanta, faces $13.7 million in lawsuits and liens, TheStreet reported in May. It remains unclear which liabilities are guaranteed by Pihakis himself and which are solely tied to the company.
The chain operates a range of concepts, including Little Donkey Mexican Restaurant, Rodney Scott’s BBQ, Hero, Magnolia Point and Psito. Since mid‑April, the group has temporarily and permanently closed 12 restaurants across the Southeast, including Psito in Summerhill and Hero Diner in Fayetteville. Google and the group’s restaurant websites currently list the Atlanta locations of Psito and Hero Diner as “temporarily closed.”
Several Hero doughnut shops, sometimes called Hero Diner, have closed before the current troubles. At its peak, there were at least ten Hero locations across four states. The company closed short‑lived locations in Charleston and Nashville in 2024 and, after opening in Montgomery in May 2025, closed it earlier this month.
All restaurants at the company’s multi‑eatery Valley Post project have closed following a lawsuit against a variety of Pihakis Restaurant Group brands and founder Nick Pihakis. “As of April 23, 2026, there is currently unpaid, past‑due, and owing to Plaintifffrom the LLC Defendants a total of $394,238.73, plus interest and costs of collection, including attorneys’ fees, pursuant to the terms of the contracts and the invoices,” the lawsuit states.
“We have engaged consulting support and are focused on doing the hard, careful work required to build a path forward — one that honors our employees, our guests, and the excellent family of restaurants that make up Pihakis Restaurant Group.”
Company statement shared with WBRC on 17 April
Birmingham Business Journal reported that the vast majority of the debt stems from personal guarantees tied to restaurant entities, real‑estate ventures and investment companies. Many of those businesses have already been sued by lenders, landlords or vendors in recent months.
The single largest exposure belongs to SouthPoint Bank, which is listed with approximately $23.56 million in total claims, including a $600,000 secured claim against Pihakis’ residence and more than $22.9 million in unsecured claims.
SouthPoint loans are tied to projects including Rodney Scott’s BBQ locations, PRG Luca, Pihakis Investment Group, Pihakis Restaurant Group Management and an unnamed Trussville development.
A Chapter 7 filing, sometimes called “liquidation” bankruptcy, allows individuals with limited income to have certain debts discharged. A trustee is appointed to review the debtor’s assets and determine whether any non‑exempt property can be sold to pay creditors. Filing generally triggers an automatic stay that stops most collection actions.
