A small business lender wants its money back from the owners of Max London’s restaurant after they defaulted on a loan.
Michael and Wendy London used their other business, Mrs. London’s Bakery and Cafe, as collateral on a $500,000 loan from the New York Business Development Corp. in December 2007.
But they haven’t made a payment since this January, according to court documents filed by the development corporation a few weeks ago in state Supreme Court in Saratoga County Court.
The Londons still owe $443,222 on the loan, and the lender has tacked on $16,694 in interest and $1,858 in late fees.
Each day they don’t pay, the penalty is $103.05, according to the court filing.
Michael London on Tuesday declined to comment on the filing but did say it would not affect business at either of the side-by-side eateries, which remain open.
“We’re negotiating this,” he said of the loan issue.
The Londons have owned their artisan bakery and cafe since 1977. In the fall of 2007 they opened Max London’s, an eatery with a New York City flair that their son, Max, runs.
The year the restaurant opened, the city backed a $75,000 low-interest loan through the Saratoga Springs Economic Development Revolving Loan Program.
In turn, the Londons agreed to hire 10 full-time employees who were in the low- to moderate-income range.
The city program is geared to help low- and moderate-income people.
The restaurant at 466 Broadway serves Mediterranean cuisine and has an extensive wine list.
Max London was trained as a chef in New York City and also worked as head chef of the former Eartha’s Restaurant in Saratoga Springs.