Why is the Mellow Mushroom at Lexington Green closed?

After just two years in that location, the Mellow Mushroom at The Plaza at Lexington Green has closed.

A statement posted Friday night on the restaurant’s Facebook page said, “We want to thank all of our guests for a wonderful journey! We hope to see you soon at another Mellow in the shroomiverse. Thanks for keeping it Mellow!”

Lexington’s older Mellow Mushroom location, near the University of Kentucky at 503 S. Upper St., remains open.

Paragon Bank filed a lawsuit in Fayette Circuit Court in April against Damon Coates, who owns the Lexington restaurants, as well as against Jason Nase of Louisville and the companies Big Mellow Restaurants, Shroomville #1, Shroomington and Mellow Ville of St. Matthews.

The bank alleges that they defaulted on a $1.6 million loan taken out in February 2016 with the fixtures at the Lexington Green restaurant included as collateral, according to the suit.

The suit asked for permission to take possession of the “collateral located at the Lexington Green property,” which the bank said was valued at about $44,000, and a judgment of at least $1,475,698 plus interest.

Coates, Nase and and the companies have not filed a response to the lawsuit.

When the Lexington Green location opened in August 2016, Coates said he hoped to “provide convenience for people” on that end of Lexington with the more suburban restaurant that seated 160 people.

The Atlanta-based pizza and beer franchise also has Kentucky locations in Louisville, Owensboro, Bowling Green, Somerset, Paducah and Wilder in Northern Kentucky, according to its website.

This story was originally published September 29, 2018 at 8:23 PM with the headline "Why is the Mellow Mushroom at Lexington Green closed?."