Gladys Knight’s Chicken and Waffles, an Atlanta dining institution featuring Southern favorites, was raided on Tuesday after Georgia’s Department of Revenue accused its owner, Knight’s son, of theft and tax evasion.
Restaurant owner, Shanga Hankerson, “is accused of stealing over $650,000 in sales and withholding taxes owed to the State, after penalties and interest the total exceeds $1 million,” said a statement released by the agency.
“The Department further alleges that Hankerson used these funds for personal use.”
This is not the first time Hankerson has been in hot water over taxes, agency spokesman William Gaston told CNN.
“He has been in over two dozen payment plans and has defaulted on all of them. It extends to 2013. They have all been for sales and withholding tax,” Gaston said.
The Department of Revenue raided three restaurant locations in Atlanta and its corporate office in Riverdale, Georgia.
“In addition to the search warrants, Agents unsuccessfully attempted to serve arrest warrants on Shanga Hankerson, Gladys Knight’s son, at his home,” the agency statement said.
Revenue officials seized Hankerson’s bank accounts and three luxury vehicles, according to the agency’s special investigation director, Josh Waites.
Hankerson is currently in Fort Lauderdale, Florida as authorities negotiate the terms of his surrender to Georgia authorities, Waites told CNN.
CNN called the office of Hankerson’s Atlanta tax attorney, Josie Walton-Harris. A receptionist issued a statement of “no comment.”
“We are working with Mr. Hankerson’s attorney to have the business up and running again as soon as possible. As soon as a receivership agreement is reached between the State and Hankerson, the restaurant should reopen for business,” said Waites.
The restaurant’s corporate phone line was disconnected. An email inquiry sent to Hankerson received no response.
Opened in 1997
Knight, the famed singer, is not suspected of any criminal activity in the case against her son.
A statement from her public relations agency sent to CNN read, “Gladys Knight lent her name to her son’s restaurants in the Atlanta area, similar to a celebrity endorsement. Ms. Knight was not involved in any way with the operation of the restaurants and she is sure that her son and his business partners will rectify the situation. As always, her main concern is for her family’s well-being and she is making sure the family has the guidance they need to assess the situation and move forward.”
Gladys Knight’s Chicken and Waffles opened in Atlanta in 1997 and has expanded to three locations.
In February, the Downtown location failed its health inspection after it received a 56 total score. A followup review raised the score to 90.
Both Knight and Hankerson discussed the health inspection with CNN affiliate WSB, on June 9. Knight visited the restaurant while she was in town performing at a concert.
Knight told WSB her son called her immediately after the failed inspection and said she was confident in his ability to run the restaurant.
“I’m not trying to get a whooping at home,” Hankerson said, speaking of the restaurant health rating.
“About the people that walk through the doors. I’m just as concerned about them as them buying tickets to come my concerts,” Knight told WSB. “I want to give them the best of who I am.”