Mr. Beef Facing Foreclosure Suit

03/14/2009 05:12 am ET | Updated May 25, 2011

Midwest Bank has filed a foreclosure lawsuit to collect about $650,000 on Mr. Beef, the longtime Italian beef sandwich restaurant in River North.

The Melrose Park-based bank alleges that Mr. Beef's co-owners, Joseph Zucchero and Michael Genevese, failed to pay off two loans, totaling $330,000, when they came due in October, and missed monthly payments on a third loan, according to a complaint filed Dec. 19 in Cook Court Circuit Court.

The loan problems aren't tied to the performance of Mr. Beef, a Chicago culinary institution at 666 N. Orleans St. The difficulties could be a simple story of restaurateurs overextending themselves at a bad time. A portion of the loans on the Mr. Beef building were used to cover costs of Natalino's, a West Town restaurant that Messrs. Zucchero and Genevese opened in March, "just on the cusp of this whole economic meltdown," Mr. Zucchero says ruefully.

Read more on Crain's Chicago Business

Suggest a correction