After confirmation that the New York State Tax Department seized X20 last Friday, we now know that the restaurant has filed for bankruptcy.
X20 – Xaviar’s on the Hudson, is an iconic upscale restaurant perched on Yonkers‘ waterfront and founded in 2008. It’s owner, Peter Xaviar Kelly, operates this and other highly-rated eateries in the region. Despite the critical acclaim, the restaurant has always faced financial difficulties.
First in 2013, it was sued by the City of Yonkers over a disputed $460,000 bill for utilities and other fees. The case was settled under undisclosed terms. Then, in September 2019, Kelly filed for Chapter 11 bankruptcy protection for himself and his two restaurants—X20 in Yonkers and Restaurant X & Bully Boy Bar in Congers. And now, it appears these two restaurants are bankrupt again.
A spokesperson from the New York Department of Taxation and Finance confirmed to The Yonkers Ledger that they seized both businesses on May 5th. The Yonkers restaurant, X20, has a warranted debt of $695,000 in sales taxes and employee withholding. Bully Boy in Congers owes $1,019,313. Bankruptcy protection allows these businesses to continue to operate while the courts determine the businesses’ ability to pay its outstanding debts.
The spokesperson from the Department of Taxation made a clear statement to us on its enforcement policies.
We enforce the tax laws because not to do so would be unfair to other similar businesses that are fulfilling their obligations under the law. Seizure is a last resort after a long period of non-compliance and non-responsiveness.
So, for now, diners in Yonkers can still enjoy the picturesque views and fine dining that X20 affords. But for only as long as it can afford to pay its taxes.
