The operator of Rexall Grill, a Duluth institution forced to close on Wednesday, owes $500,336.60 in state sales taxes and penalties, The Atlanta Journal-Constitution has learned.
Gail Herrin had not paid taxes in a five-year period from January 2004 to October 2009. The bill was more than $248,000, with interest, penalties and collection fees doubling that amount, according to documents from the Georgia Department of Revenue.
Herrin has run the landmark restaurant on Buford Highway since 1982. She did not return phone calls Friday.
"I had no idea," Lynda Alley, who has owned the building, the name and all the equipment since 1998, said when she heard the news Friday. "Why did [the state] wait this long to do something about it? I could have taken this over in 2004. This is crazy."
A sale of various items, including Coca-Cola memorabilia, will be held at 10 a.m. July 6 at Rexall Grill. After that, Alley said, she'll get the keys to the eatery, buy some plastic tables and rehire the staff.
Alley, who also owns the Duluth Rexall Pharmacy next door, expects to reopen the restaurant known for its fried chicken, fried okra and homemade peach cobbler on July 7 or 8. She will install a security system and have her accountants handle the finances.
"[Herrin] does a good job with the whole thing, except for the money," Alley said. "Her husband died in 1998, and she just couldn't do it. I just think it was overwhelming for her."
Rexall Grill, which originally opened in 1968, has a history of bouncing back from hard times.
In May 1994, it was destroyed by a fire. While the restaurant underwent almost four months of construction and renovation, Herrin served food from a concession stand in the parking lot. When the eatery reopened in August, it was more than four times its original size.
Almost every Saturday for the past six years, state Rep. Brooks Coleman (R-Duluth) has met with constituents informally at Rexall Grill. That won't be the case this Saturday.
"Everybody's just real sad right now," Coleman said. "We're hoping they work things out and get that wonderful landmark back open."
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