Mr. Beef Takes Tales of Woe to Congress

By Chuck Sudo in Food on Mar 4, 2009 7:40PM

The saga of Mr. Beef's recent misfortunes continues today as co-owner Joseph Zucchero testifies before Congress regarding his recent struggles with Midwest Bank, which holds the lien on the River North institution, has cut off Zucchero's line of credit, and threatens to foreclose on the restaurant. This despite Midwest Bank recently being the recipient of $85 million in TARP funds from the Treasury Department. From the Tribune's "Swamp" Washington Bureau blog

"I do not need, nor want, a bailout from the taxpayers. I only want the banks to be fair," Zucchero says in a written statement. "Many small businesses are being starved of needed lines of credit or are having their lines of credit not renewed upon maturity. Not only have I seen and heard this from a variety of small businesses, but I have personally lived this nightmare."

To be fair, there are at least two sides to every story. While it's easy in our banana republic economy to cast all banks as the bad guy here — made easier when many of them aren't saying where the bailout money went — it was Zucchero and partner Michael Genevese who took some money the Mr. Beef loans to finance the opening of Natalino's in the East Village/Noble Square area. That's in addition to a $2 million loan owed by Zucchero to Plaza Bank, secured using Natalino's as collateral. if anything, the recent credit crisis could serve as a reset and make both lenders and borrowers each reconsider overextension before doing business.

"Mr. Beef Goes to Washington" [The Swamp]
"Foreclosure suit hits Mr. Beef in River North" [Crain's]