Mykonos, a Towson restaurant, has filed for Chapter 11 bankruptcy protection to prevent the auction of its building and liquor license.
But the Greek restaurant's troubles don't end there. On Monday, owners of Mykonos, located just a few blocks from the new glitzy Towson Town Center, must face the Baltimore County Liquor Board for possible violations of their liquor license.
Charges against the restaurant include failure to display a liquor license, sales to minors, noise and loud music violations.
The complaint file reveals that a county police undercover cadet was served on March 14, although the waitress returned four minutes later and tried to get the beer back, saying the cadet looked too young.
Two other under-age cadets were served once in September of last year and last January. A Baltimore County sheriff tried to seize the restaurant's license on Aug. 20, but it could not be found.
Jeffrey C. Hines, an attorney representing Mykonos, said the owners of the restaurant had to file because one of its lenders, the Columbia Bank, had called in a significant part of a $100,000 revolving loan.
There were also several police reports from early this year of fights, disorderly conduct, yelling and noise at the restaurant. At one point, an officer asked to see the license and it wasn't displayed, so he reported it to the Liquor Board.
Additionally, the IRS prohibited use of the liquor license last year, and there is a July 1991 order from the state comptroller to give up the license for non-payment of taxes.
Hines said the bankruptcy filing should put on hold any actions against the restaurant.
In its bankruptcy petition filed on Wednesday, owners of the restaurant listed assets of $775,000 and debts of $525,000. The restaurant owes $20,000 in state and federal withholding taxes.
Hines said he will seek a postponement of the Liquor Board hearing and try to work with both the state and federal government to work out a repayment plan.
An auction had been scheduled for the building at 418-420 York Road which included the liquor license put up for security against the loan. The bankruptcy filing forced the cancellation of the sale, however.