A Stark County investor has filed a 65-page fraud lawsuit against Royal Docks and its founders John and Adriana Bikis, alleging the restaurant chain hid significant financial problems while seeking emergency funding.
Gouldram Holdings filed the suit Tuesday morning in Stark County Common Pleas Court, claiming Royal Docks misrepresented its financial condition when negotiating a bridge loan and potential buyout agreement in April 2024.
According to court documents, Royal Docks was “in desperate financial trouble” when seeking help to open a Cleveland location. The lawsuit alleges the company “routinely bounced checks, was in arrears on its rent, and was being sued by vendors.”
The investor claims after providing funding through multiple agreements – including a bridge loan and Membership Interest Purchase Agreement that would have given Gouldram Holdings 51% controlling interest – they discovered several undisclosed problems. These included significant hidden liabilities, unpaid sales taxes, and the company allegedly paying personal expenses for the Bikis family.
The lawsuit also claims Royal Docks failed to obtain required Small Business Administration approval for the ownership transfer agreement.
The legal action comes as the restaurant chain has faced significant closures. The flagship Royal Docks Taproom + Kitchen on Fulton Drive in Canton closed in early June, affecting 57 employees, amid what the company described as a “legal dispute stemming from a failed business relationship with a prospective investor.” The Cleveland Tied House location in Hingetown also closed in mid-May.
The Royal Docks Foeder House + Kitchen in Canton remains open, and founder John Bikis is asking supporters to patronize that location while considering opening the production facility to the public.
The investor is requesting a jury trial in the matter.
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