Here’s a recap of the top stories for the week of May 16, 2025:

Lawsuit sparked between current and former owners of decades old Petersburg diner
Reported by BizSense’s Mike Platania

A legal dispute has emerged over the sale of the historic Dixie Restaurant in Petersburg — due to a paperwork error that may end up costing the former owners a significant sum.

Charles and Frances Rawlings, who owned and operated the diner for years, sold it in 2024 to Dylan and Savannah Yeargin for an agreed $250,000 payable in weekly, $1,000 installments.

The Yeargins also agreed to work alongside the Rawlings for a transitional period to learn the business before agreeing to sell, but the written contract listed the seller as “Dixie Restaurant, Inc.” — a corporation that doesn’t actually exist — rather than its true legal form, “Dixie Restaurant, LLC.”

That discrepancy sparked a lawsuit. The Rawlings allege both sides intended to transfer the LLC and that the mistaken wording was a clerical error.

After initially making payments, the Yeargins stopped, citing the incorrect business name as grounds to challenge the deal. The Rawlings are now asking a judge to correct the contract and enforce the original agreement.

You can have these and other local business stories sent right to your inbox. Sign up for the Richmond BizSense newsletter!