BIRMINGHAM, Ala. (WBRC) – Nick Pihakis, the Birmingham restaurateur behind Hero Doughnuts, Little Donkey, Rodney Scott’s BBQ and other local brands, filed for Chapter 7 bankruptcy Thursday, Aug. 6 in the U.S. Bankruptcy Court for the Northern District of Alabama.
The filing is the latest development in a months-long financial collapse that has shuttered more than a dozen restaurants across Alabama, Georgia, Tennessee and South Carolina.
The voluntary petition, which spans 154 pages, lists total liabilities of more than $44 million against total assets of approximately $10.6 million. The filing lists between 50 and 99 creditors.
Closures began in April
The bankruptcy follows a string of legal and financial troubles that began publicly in April, when Tasty Town closed without prior notice on April 12. Within weeks, more than a dozen other Pihakis Restaurant Group (PRG) locations had closed or temporarily closed, including Hero Homewood, Rodney Scott’s Homewood and multiple Little Donkey locations.
According to the Birmingham Business Journal, a media partner, much of the debt stems from personal guarantees on restaurant loans, leases and other obligations across multiple states. The petition lists at least 14 active lawsuits filed in Jefferson County, Alabama; Shelby County, Alabama; Brooklyn, New York; Charleston County, South Carolina; and Fulton/Fayette County, Georgia.
Major creditors named in filing
The bulk of the debt, more than $42.8 million, is classified as nonpriority unsecured claims, most tied to personal guarantees on business loans and restaurant leases.
SouthPoint Bank, a Birmingham-based lender, is among the largest creditors, with multiple business loans totaling more than $18 million. The largest single SouthPoint claim is $9 million, a personal guaranty on a loan to Pihakis Investment Group dating to April 2019.
Other major creditors include Michael Mouron, listed at $2.57 million related to loans tied to PRG Luca and other restaurant projects; PF-Town Center II, LLC at $1.27 million related to a Hero Doughnuts lease; and Robertson Banking Company at $625,668, the same bank that sued Pihakis in April.
The filing also lists more than $363,000 in personal credit card debt across three American Express accounts and a Barclays Lifestyles Black Card. American Express has filed two separate lawsuits against Pihakis in Shelby County Circuit Court, both listed as pending in the bankruptcy filing.
Income, assets and home value disclosed
Pihakis lists his monthly income at $12,465 and monthly expenses at $15,656.
His primary listed asset is a $9.8 million loan receivable from PRG Restaurant and PRG Management, which the filing describes as “doubtful.” His home in Birmingham’s Mt. Laurel community is valued at $1.1 million, with a mortgage held by Renasant Bank and a disputed $600,000 claim from SouthPoint Bank also secured against the property.
Personal assets sold ahead of filing
The 154-page filing includes a detailed account of personal asset sales in the months leading up to the bankruptcy. According to the Statement of Financial Affairs, Pihakis sold or auctioned a series of personal and business items in the spring and early summer of 2026:
April 11 — Sold a restaurant maintenance truck for $1,901April 14 — Sold a Kubota tractor for $22,000April 24 — Sold an Andy Warhol print, listed as jointly owned, to Revolver Gallery in West Hollywood, California for $35,000April 30 — Sold a one-ounce gold coin to JM Bullion for $4,559April 2026 — Sold a 2022 Mercedes Sprinter van in a private sale (amount not listed)June 2026 — Auctioned a Rolex watch through Worthy Auction for $600
The filing also shows a 2022 Mercedes was repossessed by Fifth Third Bank on May 20, 2026, with a listed value of $121,822.
What happens under Chapter 7
Under Chapter 7 bankruptcy, a trustee is appointed to liquidate nonexempt assets and distribute proceeds to creditors. Pihakis indicated in the filing that he believes funds will be available for distribution to unsecured creditors after exempt property is excluded and administrative expenses are paid.
An attorney listed as representing Pihakis had not responded to a request for comment as of publication. Any response will be added to this story.
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