Tax Trouble Closes Three Area Sonic Restaurants

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

SACRAMENTO-

Those craving Sonic's signature fast food in the Sacramento area might have to wait a while.

The locations in Woodland, Roseville and Yuba City have all closed.

Those restaurants were operated by Abe Alizadeh, who pleaded guilty to owing the state more than $7 million in sales and employment taxes in 2012.

That forced Alizadeh to close 71 Jack in the Box restaurants he operated across northern California that year, but he was able to keep the Sonic stores running.

However his attorney, Saied Kashani told FOX40 the IRS since started to take away the Sonics' profits to pay for past due penalties and interest.

"This put the restaurant in an impossible position because they could not retain enough revenue to pay operations and pay other taxes," Kashani told FOX40.

Signs about a remodel was the only explanation customers in Roseville got about why that location was closed.

Alizadeh could fight to regain control of the restaurants.

"The Alizadeh family is hopeful that they can come to a resolution with the taxing authorities that will allow these restaurants to re-open," Kashani said.

However, he may not get that chance.

A spokesperson from Sonic's corporate offices in Oklahoma told FOX40 the company has plans to remove Alizadeh as a franchisee and it has already gotten a lot of interest from other potential operators to take over his locations.

But the company said re-opening under new management could take anywhere from 90 days to more than a year.

Alizadeh also owned Crush 29 and Suede Blue, two restaurants in Roseville which closed this summer.

Kashani said Alizadeh and his family no longer operate any other restaurants.