Benjamin Berg, owner of some of Texas’s most notable restaurants, faces a lawsuit from First Horizon Bank for allegedly defaulting on a $3 million loan, raising questions about the financial stability of his expansive hospitality empire.
A prominent restaurateur in Texas is currently embroiled in a multimillion-dollar lawsuit, accused of failing to repay a $3 million revolving line of credit. First Horizon Bank initiated legal action on June 17 in Harris County District Court against Benjamin Berg, his Berg Hospitality Group, associated business entities, and co-guarantor Neal Goldman.
Court documents reveal that Berg entered into the loan agreement on May 6, 2024, which includes a one-year repayment term. The bank claims that Berg did not meet the debt payment deadline set for April 2025. At the time the lawsuit was filed, the total amount due, factoring in accrued interest, reached almost $3.2 million.
First Horizon asserts that it notified Berg on April 1 regarding the non-renewal of the loan and subsequently made a repayment demand in May. The legal action claims that Berg and his associated entities have ignored multiple requests for repayment, asserting, “Their actions clearly indicate a lack of intention to fulfill their obligations under the Loan Documents.” The financial institution is pursuing complete reimbursement, including accumulated interest, legal fees, and additional remedies.
Berg Hospitality Group runs over a dozen high-end dining establishments in Houston, Fort Worth, and Arlington, featuring well-known venues such as B&B Butchers, Annabelle Brasserie, and Trattoria Sofia.
Berg, recognized for his vibrant character and impact on Houston’s culinary landscape, stated to the Houston Chronicle that he was unable to discuss the current legal proceedings but referred to such issues as “not uncommon in the restaurant industry.” He stated, “I am assured that, similar to past experiences in my career, this issue will be addressed promptly and positively in due time.”
The legal action highlights the financial difficulties that can arise from running prominent dining establishments, even for one of Texas's most esteemed figures in the hospitality industry.
