John Crabtree of the Crabtree’s Kittle House Restaurant & Inn and chef/owner Peter X. Kelly of Xaviars Restaurant Group talk about being in the the business for 35 years April 24, 2018.
The Journal News
Chef Peter X. Kelly, known for his fine dining establishments Restaurant X & Bully Boy Bar in Congers and X2O Xaviars on the Hudson in Yonkers, has filed for bankruptcy protection.
Kelly is seeking reorganization for his restaurants and for himself in three separate Chapter 11 filings dated Sept. 12. Both his restaurants are open for business as usual.
“Doing this kind of company reorganization is something everyone from Elton John to George Foreman has gone through,” Kelly told The Journal News/lohud. “It’s an unfortunate situation and I’m going to work through it.”
“Not one employee has been let go, nor have we sacrificed quality,” he said. “Everything is the same.”
Kelly said the goal of the procedures is to reorganize his company.
The bankruptcy filings were made for HCC Caterers Inc., which uses X20’s Water Grant Street address in Yonkers, Ripe Inc. Restaurant X & Bully Boy Bar and for Blauvelt resident Kelly personally.
The HCC filing listed assets worth $50,000 or less, and liabilities totaling between $1 million and $10 million. Among the largest amounts owed to creditors listed in the filing were $1 million to the IRS, $960,000 to the New York state Department of Taxation and Finance and slightly more than $263,000 to the federal Department of Labor Wage & Hour Division.
The Ripe Inc. filing listed $433,000 owed to the IRS, $633,000 to the state Department of Taxation and Finance and $241,617 to the U.S. Department of Labor Wage and Hour Division.
“The numbers,” said Kelly, “do not include payments already made to offset assessments nor the abatement of penalties.
“Since 1983, I have worked to create a brand that allowed me to employ an incredible number of hospitality professionals and to support the communities where we worked,” he said. “We filed for Chapter 11 reorganization to continue that work, and I have no intention of ceasing operations and my restaurants will continue to operate at the same high level which we have always strived for.”
That includes his work supporting local organizations and nonprofits that he calls “critical to our collective communities.”
Kelly said media reports about his debts for federal and state taxes have been grossly overstated.
“Like any business, a number of difficulties have presented challenges,” he said. “But we’ve taken appropriate cautionary measures to protect our business moving forward.
“This is something our guests don’t need to worry about. My job, as it always has been, is to provide the finest dining experiences and to continue to exceed guest expectations.”
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