Troy's Restaurant files for bankruptcy

Troy's Restaurant & Deli, a student favorite for over twenty years, has filed for protection from creditors under Chapter 11 of federal bankruptcy law. John Kollias, the owner of Troy's, said he hopes to use this time to reorganize the business and look for ways of raising enough capital to pay debts totaling more than $43,000. He said he had not decided on a "clear-cut way" to raise the money, but added he might see whether University alumni would be willing to invest in the restaurant. He added Troy's, which is still open for business, needs the support of University students now more than ever. "Without some kind of campus support, I don't think there's any other way to stay in business," he said. Arthur Kyriazis, Kollias' lawyer, said filing for bankruptcy has given Kollias about four months to develop a reorganization plan. If Kollias has not raised enough money by then, the owner of the building, University City Housing, can force the liquidation of Kollias' assets. Kyriazis said he thought Troy's has "a pretty good future" and predicted Kollias "will be able to reorganize." He said the restaurant might move to another location nearby if enough money is raised. Saul Krenzel, lawyer for University City Housing, would not discuss the case, saying only that "we are proceeding in accordance with the law." Kollias blamed a littany of factors on his restaurant's current problems. He said Troy's has not been "what it once was" since May 1990 when the restaurant lost its liquor license and then was closed for operating with an expired retail food permit. He said shortly after he reopened the restaurant last year, the onset of the recession made it even more difficult to pay bills. Another factor, according to Kollias, has been what he calls the University's attempt to keep rent in the area "artificially high" and "keep the locals out" of the area. If Troy's does close its doors, it will mark the end of a long family tradition. Troy's has been in the Kollias family since its doors opened in 1970 on 39th Street between Walnut and Chestnut streets. Kollias said his mother has passed away and his father has retired, leaving only him to keep the restaurant open.

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