A restaurant at Hills Plaza recently closed, and the owners were sued for more than $63,000.
State College Diner co-owner Khaled Zaky said he has not been in State College since early January when his father was diagnosed with cancer in Egypt. His father recently passed away, and he has remained in Egypt to support his mother.
Zaky said there are no plans to reopen the restaurant.
“The business slowed down, plus the lease (is) almost over,” Zaky said. “If there is any chance to open again somewhere in State College, I’ll do it. Like I said, we love State College and we have support from all the people. If there is no available spot to open again in State College, I believe that we won’t stay there.”
Highland Holding Group filed a lawsuit July 10 against State College Diner LLC and its owners Zaky and Amr Zaki, who also own Red Flame Hookah Lounge in downtown State College.
The suit alleges that the owners ceased to pay rent since January and have sued State College Diner LLC for $63,387.71 in back rent, interest and late fees.
Zaky and Zaki entered into a five-year lease agreement for $4,400 per month March 4, 2014, at 421 E. Beaver Ave., according to the suit, which also said that the suit’s defendants vacated the property in mid-June, a violation of the lease agreement. Red Flame Hookah Lounge opened in 2015.
It is possible, Zaky said, that he will look to open another business in a location outside of State College.