Shamrock Foods Co. has filed a lawsuit against Robert McMahon and his Metro Restaurants Inc. seeking repayment on the outstanding balance of a $484,436 promissory note.
McMahon and the company own and operate Metropolitan Grill, Old Pueblo Grille and McMahonโs Prime Steakhouse. Court papers say the company, which is in Chapter 11 bankruptcy, has defaulted on the remaining $217,759 balance owed to Shamrock Foods, a retail and wholesale food service company.
The suit claims McMahonโs company stopped paying the required weekly installments in January and again in February.
McMahon said he had not seen the court filing as of Monday afternoon and could not comment.
The suit marks the latest in a string of difficulties for the locally owned restaurant company.
In February, Metro Restaurants filed for Chapter 11 bankruptcy, which allows debtors to continue to operate while they come up with a plan to repay their debts.
At the time, McMahon told the Arizona Daily Star that Metro Restaurants remained profitable and had positive sales trends.
Court documents list Shamrock Foods as the companyโs second largest creditor. National Bank of Arizona is the largest creditor listed, with more than $1.3 million due. Shamrock Foods filed a petition in that case to have Metro Restaurants return hundreds of dollars worth of equipment, including coffee and tea makers.
In January, a related McMahon company that owns the property housing McMahonโs Prime Steakhouse filed for bankruptcy.
That filing has provided a temporary stay of a planned auction of the property.
