Chicago Eatery Faces Foreclosure Suit
With the economy continuing its descent and the housing market still unable to rebound, foreclosures have begun to affect thousands of homeowners across the Chicago area these days. And it appears that local businesses have also become vulnerable to this ballooning problem. The Chicago Tribune recently reported that Mr. Beef, a popular Italian beef sandwich restaurant in the River North area, is facing a foreclosure lawsuit filed by a bank seeking more than $600,000. The eatery has been around for 30 years, and garnered national attention a few years ago when it was featured on Jay Leno's Tonight Show.
According to the Tribune, 'Joseph Zucchero — one of the owners of the restaurant — had two loans with Midwest Bank that matured late last year. Attempts to refinance the loans were unsuccessful — both applications were rejected by the bank. When the original principal was not repaid on the old loans when they matured, the bank filed a foreclosure action, Zucchero told the Tribune. Zucchero says the bank is attempting to collect $300,000 on the loan collateralized by Mr. Beef, and another $300,000 relating to another Chicago restaurant partly owned by Zucchero.
Mr. Beef still cooking
The owner contends the beef stand is not closing and says his business is strong! Zucchero's attorney, Jim DiChristofano, indicates the bank is awaiting approval of refinancing, and is not acting to shut down the homey Chicago beef joint at this time.
Jay Fritz, Chief Executive of Midwest Bank, refused to comments specifically on the Mr. Beef situation, but said his bank continues to 'lend aggressively' to both new clients and old desperate situations for other businesses across Chicago. With several banks still not lending to small businesses – even success establishments like Mr. Beef – the situation has become desperate for the owners and for their customers who may soon get turned away from their favorite establishments.
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