Troy's to close by end of semester

Troy's Restaurant and Deli, a popular student hang-out for more than 20 years, will probably close its doors on 39th Street for good sometime within the next two months. John Kollias, the owner of Troy's, said Monday he has had "no luck" raising enough capital to pay debts totaling more than $43,000, adding, "I really don't think we're going to make it through the semester." In September, Troy's filed for protection from creditors under Chapter 11 of federal bankruptcy law. Kollias said at the time he would use that "breather" to reorganize his business and look for ways to raise money. But due to the lack of capital, Arthur Kyriazis, Kollias' lawyer, said his client has agreed to a voluntary conversion from Chapter 11 to Chapter 7 of the bankruptcy law, which calls for a court-appointed trustee to liquidate the restaurant's assets to pay creditors. Secured creditors will be the first to receive payments. Other creditors, including University City Housing, which owns the building, will be paid only if any of Troy's assets are left. Kollias said he intends to reopen Troy's at another location as other area restaurants, including Smokey Joe's and Kelly and Cohen, have successfully done in the past. "I'm not going to curl up my tail and walk away," he said. Kollias said Troy's has not been the same since May 1990, when the restaurant lost its liquor license and was closed the next day for operating with an expired retail food permit. He said since reopening Troy's last December with a refurbished interior and a modified menu, many former Troy's customers have not returned, and he blamed much of the dip in patrons to the current recession. Other stores to the north of campus, including the Athletic Department clothing store and Barley and Hops restaurant, have also felt the effects of the recession. Both closed within the last year. But Kollias has blamed several other factors besides the poor economy for his restaurant's current problems, including what he calls the University's attempt to maintain rent in the area at "artificially high" levels and "keep the locals" out of the area. He also said he was disappointed that students, who have long cherished Troy's eggels and gravy fries, did not come out in support of the restaurant with "public demonstrations." He suggested that the number of student customers has declined in the last few years because many are afraid to walk there at night and because the restaurant has not had a liquor license since May 1990. Once Troy's closes its doors on 39th between Walnut and Chestnut streets, a long family tradition will come to an end -- at least for now. Troy's has been in the Kollias family since 1970, when his parents opened the restaurant.

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