State College Diner LLC’s tumultuous year recently took another downturn.
Company co-owners Khaled Zaky and Amr Zaki closed the restaurant and Red Flame Hookah Lounge this year. They were sued in July for allegedly breaching a lease agreement for the hookah business.
A confession of judgment entered Friday in the Centre County Court of Common Pleas will put at least a $66,704.71 dent in their bank account.
Highland Holding Group filed the lawsuit against the company and its owners in the amount of $63,387.71, though interest has accrued an additional $3,317 against the company and its owners. Additional interest has also began to accrue at a daily rate of $17.37 since Friday, according to court documents.
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The suit alleged that the owners ceased to pay rent since January.
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 in July, that he will look to open another business in a location outside of State College. Zaky previously told the Centre Daily Times that he relocated to Egypt in January 2017 to support his mother
“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.”