WSFS is seeking expedited action for the appointment of a receiver for the vacant Soffrito Italian Grill on Capitol Trail near Newark, Chancery Daily reported.
WSFS and its predecessor bank, First National Bank of Wyoming have loans on the property. WSFS purchased the Kent County bank, which had put together a financing package for the property.
Click here for previous stories on Soffritto
According to a court filing and Chancery Daily, mortgages are in default and utilities have been cut off, leading to a request for a receiver to restore the services and secure the unoccupied restaurant.
Foreclosure proceedings have also been filed. Loans to the restaurant total more than $2 million.
Soffritto operated for more than a decade at the site, a former location of the now-defunct Lum’s chain that was extensively remodeled. Lum’s, which had its heyday in the 1960s, specialized hot dogs soaked in beer.
Over the years, the restaurant drew praise for its Italian cuisine, with co-owner Stefania Panza winning many awards for her efforts at building the business.
The restaurant closing was first reported in early August. At that time, a taped notice of an overdue water bill from the City of Newark was posted on the door. To date, owners have not commented on the closing.
The 235-seat restaurant has been listed as being for sale or lease at the time of closing.
In 2014, Delaware Business Now reported that Soffritto celebrated an expansion and renovation project at the site that was financed with the help of a loan program for the State of Delaware that also included participation from the First National Bank of Wyoming.
The expansion included a banquet room, a common feature at many successful restaurants.
Christina Dirksen, a spokesperson for the Delaware Economic Development Office said the loan came under the Small State Business Credit Initiative (SSBCI). The program is designed to increase small businesses’ access to capital by reducing risk to the lender. The benefit to the borrower is a below-market interest rate.
Dirksen said any losses would be shouldered by the lender and federal funds from the Treasury Department.
To date, the program has assisted 35 entities in the state, Dirksen said.
