A family tug-of-war over a fast-casual restaurant chain that was once growing but is in retreat is getting more intense, and two more eateries are now part of the fight.
The battle for control of Lefty’s Famous Cheesesteaks Hoagies & Grill began last year when businessman Allie Mallad sued his two relatives and business partners — his cousin, Nayfe Berry, and her adult son, Hussein “Sam” Berry — claiming they were attempting to squeeze him out of Lefty’s Cheesesteaks and running the business poorly.
Mallad fell short in his initial effort to have a Wayne County Circuit Court judge appoint a receiver for the business. But last week the Michigan Court of Appeals took the matter out of private arbitration — where the Berrys had wanted it — and back into the court system.
Also last week, the Berrys — through their Lefty’s Holdings corporation — filed a new and separate lawsuit against Mallad in federal court in Detroit. This lawsuit seeks to officially end their partnership with Mallad that began nearly four years ago and saw the chain reach more than 50 locations in 2022.