Why was Dominick's listed for sheriff's sale? It's still open daily and has new lender

Despite rumors to the contrary, longtime landmark restaurant Dominick's, 123 W. 12th St., is still open, serving food from 7 a.m. to 2 p.m. daily.

That's the first thing co-owner Tina Ferraro wants people to know, because a combination of a bad phone number and reports that the business and building were up for sheriff's sale have taken a toll on the business.

"I hear from customers all the time that they didn't know we were open," Tina Ferraro said.

That's not to say the restaurant is off the market. Owners Tina and Tony Ferraro have divorced, have both developed health problems and have other dreams they'd like to pursue individually.

That future was looking pretty dicey for a few months, when a new representative of their lending institution, Bridgeway Capital, called in the loans on both the restaurant and the building itself last summer. Twice, Dominick's was placed on the list for a sheriff's sale, once in November and again for February 2024.

Pandemic creates financial headaches

The problems started during the COVID pandemic, when restaurants and bars were closed for months. At the time, Dominick's was bringing in between $50,000 and $52,000 a month in sales, according to Tina Ferraro. Business collapsed, but Tina Ferraro said they were making payments on their loan with their own money.

They had purchased the business in 2016 with help from Bridgeway because the lender was recommended to them by Gannon University Small Business Development Center. The loan, (actually two loans: one on the business and another on the building for a total of roughly $300,000) was structured over five years to be paid in full by the Ferraros through refinancing efforts at the end of the term, which was in 2021, and which turned out to be 18 months into a global pandemic.

"Pre-pandemic, sales averaged around $50,000 monthly," Tina Ferraro said, "And dropped to ... $7,200 monthly during the two mandatory shut downs which lasted for months."

"It was out of our hands," Tony Ferraro said. "From COVID to the bankers, we did everything we could."

As for the people who believe they tried to skip out on paying their bills, he said, "If they could see our financial situation, they could see there's no money coming in our way. At this point we're stuck until we can sell it. But it's definitely a relief knowing that (Bridgeway is) not involved with us anymore."

Tina Ferraro said they never missed a payment on their Bridgeway loans, and early in the pandemic, which started in 2020, they contacted Bridgeway to find out what they could do to get an extension on the loans.

They had to pay $800 for the extension, but they got it, which gave them six months to regroup and make good on their Bridgeway loan.

"Despite excellent credit ratings, (we) did not have a solid three years of post-pandemic sales to provide to a financial institution in order to secure the loans we needed," to pay off the Bridgeway loans, she said.

Three months into the six-month extension, the Ferraros decided to sell Dominick's.

Tina Ferraro said they had a hard time selling Dominick's and in spring of 2023, a new lawyer, J. Michael McCague, was put in charge of their Bridgeway loan. McCague told the Ferraros he was calling in the balloon payment on both loans, which in Bridgeway's view was two years' past due.

Despite explanations from the Ferraros, McCague said the bank was prepared to take Tina Ferraro's home, which had been used as collateral to get the first Bridgeway loans. She spent her personal life savings to pay off one of the loans in what she called "a good faith effort."

All told, Tina Ferraro said she has sunk $275,000 of her own money into Dominick's from the start.

"This wiped out my life savings built up over 28 years of working," she said of money earned largely in health care.

Family tragedy slows process

In July, the Ferraros sent the paperwork on the paid-off loan but failed to have it notarized. Tina Ferraro said their granddaughter in Pittsburgh died, and the notarization slipped her mind while dealing with the family's grief. What followed was the business getting listed for sheriff's sale for Nov. 17.

When the notarized documents were received by McCague, Dominick's was removed from the November sheriff's sale schedule and moved to Feb. 16 instead. In the meantime, the Ferraros were able to refinance the remaining $177,000 and the business was removed from the sheriff's sale schedule altogether as of Jan. 4.

What's next for Dominick's?

Despite the ordeal and their decision to divorce, the Ferraros both still work at the restaurant. But Tina Ferraro said they still hear from the public and customers who think they are closed, and sometimes endures comments that imply they deserved what happened because they "didn't pay their bills."

"Over the last several months, we and employees have been told repeatedly that customers thought the business was closed and that we were cited," Ferraro said. "Other comments have been hurtful and not accurate and have caused concerns as well.

"(We) were not delinquent with (our) Bridgeway loans and did pay those bills," Tina Ferraro said. "It was just the final balloon payment that could not be satisfied, even though monthly payments continued to be made."

Mostly, she just wants people to know that they're through that storm and are still serving their famous meatball omelettes. The building and business are still for sale together or separately, and she hopes diners will come back and support the Erie landmark.

"The global pandemic has been a struggle and has changed the way many of us have to do business," she said. "But (Dominick's is) still standing and (we) would love support, while (we) wait for the next buyer to fulfill their own dreams at this Erie location."

Contact Jennie Geisler at jgeisler@timesnews.com. Or at 814-870-1885.

This article originally appeared on Erie Times-News: Erie PA restaurant Dominick's still open, off sheriff's sale schedule