Purchase of Shoney's chain collapses

A deal to buy Shoney's Inc. has cratered because of supposed health code violations, a possible eviction at one of its stores and other issues, and the would-be buyer, wanting out, is suing in Davidson County Chancery Court to get back its $1.5 million in earnest money.

Brentwood-based Centrum Equities, a unit of Centrum Properties of Chicago, struck a deal with Lone Star Funds in July to buy the restaurant chain. Dallas-based Lone Star had bought Shoney's in 2002, when the company still included the Captain D's seafood chain. Lone Star sold Captain D's last year.

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