X20 in Yonkers is open for business, under bankruptcy protection
X20 Xaviars on the Hudson in Yonkers is open after briefly closing because of tax debts.
According to Chef/Owner Peter X. Kelly, both X20 and his Congers spot, Restaurant X & Bully Boy are fully operational — and still catering to reservations, weddings, fundraisers and other events.
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According to a spokesperson for the state Department of Taxation and Finance, X20 was temporarily shut down for lunch May 5 but quickly reopened after Kelly filed for bankruptcy court protection. A Chapter 7 or 11 bankruptcy court filing allows businesses to continue to operate while the court determines how the business must resolve its debts.
The Tax Department reports X20's warranted debt is $695,000 while Restaurant X owes $1,019,313 in sales taxes and employee withholding.
"The internal financial challenges of any business — or family for that matter — can be difficult and complex and, sometimes, even embarrassing," Kelly said in statement to The Journal News/lohud. "For me this is one of those moments. To have internal business matters aired in public without context or full accuracy is frustrating, of course, but that is a topic for another day.
"It is unfortunate that New York State moved in such an aggressive manner while our attorneys were in discussion and negotiation, however we will continue to be an integral part of the communities we serve."
His restaurants will remain open, he said.
"We, like so many other businesses, work hard every day to meet our customers’ needs, keep our staff employed, keep our bills paid, and, yes, stay on top of our taxes," he said. "It’s not always easy, but we’ve been working at it for more than 30 years and we plan to be doing it for many more years to come."
This is not the first time Kelly has filed for bankruptcy protection, as lohud reported on in 2019. Both restaurants remained open at that time, no employees were let go and Kelly said they never sacrificed quality.
Kelly said that filing for Chapter 11 does not mean his restaurants are closed or evading debts.
"In fact, it ensures we can stay open and operational and it outlines a careful structure to ensure payment of all our debts," he said.
It's no secret business has been tough for a vast number of restaurateurs due to the pandemic. Fine dining spots were particularly hard hit, with places that were never designed for takeout and delivery forced to quickly pivot.
X2O is such a high-profile restaurant that its troubles have even become a political issue in Yonkers. Anthony Merante, a City Council member seeking the Republican nomination for mayor, blamed the restaurant’s “downhill slide” on the failed economic policies of Mayor Mike Spano.
Jeanne Muchnick covers food and dining. Click here for her most recent articles and follow her latest dining adventures on Instagram @lohud_food or via the lohudfood newsletter.
This article originally appeared on Rockland/Westchester Journal News: X20 Xaviars Yonkers NY restaurant reopens under bankruptcy protection
