The foreclosure threatens the beloved Plaza Mariachi, an iconic Nashville landmark.

By Elias DaSilva | September 16, 2024.

Without a miracle, bankruptcy could be the only remaining option to prevent Plaza Mariachi from facing a foreclosure auction scheduled for Tuesday at 11 a.m.

Mark Janbakhsh, the owner of Plaza Mariachi, secured $11 million in loans from First Financial Bank during the creation of what has become a hub for Latino culture and business in Nashville. These loans were initially due on January 28, 2023. In early June, First Financial Bank initiated foreclosure proceedings.

Unless Janbakhsh can somehow settle the debt, filing for bankruptcy is the only strategy that could delay the foreclosure, triggering an automatic stay and giving Janbakhsh time to negotiate a solution.

Janbakhsh purchased the property in 2013 for $1.9 million and transformed it into Plaza Mariachi in 2017. Since then, this beautiful place has become a cherished cultural landmark in South Nashville, featuring live music, events, dancing, and shops.

Unfortunately, despite the achievements and the locals’ love for Plaza Mariachi, Janbakhsh has faced numerous legal challenges in recent years.

As the majority owner and CEO of Auto Masters, a Tennessee car dealership chain, Janbakhsh, along with CFO Steven Piper, allegedly defrauded banks of several million dollars, with part of those funds going towards the development of Plaza Mariachi. Janbakhsh has already faced 18 fraud charges since 2022, with a trial initially scheduled for June, which has since been postponed. The trial date remains unscheduled.

Following the foreclosure announcement, Janbakhsh issued several statements claiming that he has never stopped paying the debt to the bank and that Plaza Mariachi will continue its operations, as it has a positive cash flow.

David Anthony, the trustee overseeing the sale, confirmed that the foreclosure is proceeding as planned.