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The Yonkers diner owners also operated the Executive Diner at 26 Saw Mill River Road (Route 9A) in Hawthorne
As reported here by Daily Voice, the American Diner Group filed a Chapter 11 petition in federal Bankruptcy Court.
Representatives for the Broadway Diner at 590 S. Broadway have proposed converting the 0.34-acre property into a hotel. An application for a land-use change to the city's zoning board is expected in September.
The family-owned diners claim they were forced to file for bankruptcy because of an $837,000 U.S. Department of Labor judgment that was assessed last year for paying workers less than they had earned.
“It is the debtor’s intention to immediately seek mediation and reach a settlement with the DOL that will enable the debtor to successfully emerge from Chapter 11," vice president Gulam R. Khan wrote in an affidavit.
The diners filed bankruptcy petitions under their corporate names, Chrisevan Corp. for the Yonkers restaurant and American Diner Group Inc. for the Hawthorne location.
In April, Bharat Gandhi of Broadway Hospitality applied to the Yonkers Planning Board to convert a light industrial building at 189 S. Broadway into a 54-room hotel. Gandhi runs the Yonkers Gateway Motel at 300 Yonkers Ave.
Both proposed hotels are drawing some opposition.
In a letter to the Yonkers Planning Board, Dennis Monasebian, chairman of the South Broadway Business Improvement District, wrote that a hotel on South Broadway could become a facility that houses the homeless, the mentally ill or drug addicts.
"South Broadway is at the beginning of a revival; our businesses are strengthening, our streets are getting more attractive with community artwork and we are getting to be known as a destination location for visitors from outside Yonkers," Monasebian wrote. "We cannot allow this to happen on South Broadway."
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