Mohammed Khaldi said he hopes to open at least one of his four businesses closed last week by the Arkansas Department of Finance and Administration.
The state agency closed The Fez Hookah Lounge & Cafe, 207 N. Thompson Ave.; Tangiers Mediterranean Grill, 2800 N. College Ave.; Pitas Mediterranean Grill, 540 W. Dickson St.; and Wingz on Dickson, 644 W. Dickson St., on Friday over sales tax delinquency.
Khaldi owns the restaurants with his wife, Stephanie.
He said slow business and over-expansion made him late on his tax payments.
“We need to tighten our belts,” he said, adding if they can open they will do so with fewer employees and adjusted hours.
Tangiers Mediterranean Grill is the first restaurant he hopes to open, saying it has a very loyal customer base.
Roberta Overman, manager of the state’s sales and use tax section, said closing notices were served on the businesses Nov. 29 and they were shut down Dec. 7.
“It is a sales tax issue. They owe more than three months of sales tax,” she said.
The department has a tax lien on the businesses for April and May totaling $6,289. Overman said more taxes are owed but that’s the amount that currently has liens.
Fayetteville Advertising and Promotion Commission records show none of the four businesses have paid the city’s hotel, motel and restaurant tax since July.
Tom Atchley, excise tax administrator for the Arkansas Department of Finance and Administration, said business owners with delinquent taxes have the option to set up payment plans.
“If they don’t do that, state law requires we close the businesses,” he said. “We prefer businesses to not have to close, but it does happen.”
Overman said the Khaldis did have a payment plan at one time and failed to make the required payments. The only way for them to open is to pay the amount owed in full. She said the owners haven’t contacted the department since the closings.
Khaldi said he has hired a lawyer who is helping him work with the state so he can open.
“If they are willing to work with us we can reopen. I guess we took too long making our payments,” he said.
Overman said the first business the Khaldis registered with the agency was The Fez Hookah Lounge & Cafe in January 2007. Other registration dates are Tangiers Mediterranean Grill in December 2008, Pitas Mediterranean Grill in August 2011 and Wingz on Dickson in December 2011.
Web Watch
Closure Notifications
The Arkansas Department of Finance and Administration lists business closure notifications for delinquent sales and use or withholding tax at www.ark.org.