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The principals of Allied Grocery Co. have been slapped with a $420,000 judgment for not making the final payment on a series of promissory notes issued in 1985 to a group of nine previous owners of the Preston-Safeway supermarket chain.
According to a judgment handed down March 10 by Hancock County Circuit Court Judge Ronald L. Gottschalk, the principals of Allied Acquisition Inc. --Ethan Jackson, Franklin L. Jackson, Brady R. Justice Jr. and Lowell A. Peters-are required to pay final payments plus interest to each of the nine noteholders listed in the lawsuit.
Most of the noteholders-who together held notes valued at almost $1 million-are members of the DeFabis and Preston families, who sold the chain to Allied during the heat of the 1985 grocery wars.
Named as plaintiffs in the suit filed last August are Ernest DeFabis, Julius F. DeFabis, Michael DeFabis, Philip F. DeFabis, Charles T. Heck, Marvin L. King, Roy F. Miller, Francis E. Preston and Harold O. Preston.
The judgment is the latest in a string of events during the last two years that have plagued the principals of Allied, three of whom are also major shareholders of...