Sully’s eatery closed by state
HADLEY — After years of tax problems, Sully’s Restaurant was recently seized by the state Department of Revenue for owing $82,221 in state taxes.
However, the Department of Revenue later released the seizure property, on Feb. 15, according to Ann C. Dufresne, communications director for the Department of Revenue. It took that action because the department decided an auction would not raise enough money to cover the cost of the auction and seizure.
A sign at the building at 235 Russell St. says the property is available for rent.
At the time of the seizure, Sully’s owed meals taxes and income tax withholding, according Dufresne.
Donald E. Sullivan, who owned the restaurant and did business as Sully’s, is still liable for the tax bill, Dufresne said.
The Bulletin was unable to reach Sullivan for comment. The phones at Sully’s Restaurant and his home are disconnected.
Sully’s Restaurant, which was founded by Donald and his wife Helen Sullivan, of 119 East St., opened in 1999 at Stan’s Drive-In. Sully’s, which advertised as “the home of Polish music,” became a favorite spot for residents who would start off their mornings with polka music and classic diner fare.
Donald Sullivan cooked staples like eggs, waffles and pancakes for breakfast each day, and daily lunch specials like pot roast, roast turkey and fish and chips. Helen Sullivan ran the front of the house, waiting tables with the assistance of extended family members.
The restaurant soon outgrew its first home and in 2001 Sully’s moved to 235 Russell St. The new space was twice as large as the original, and according to a 2001 article in the Gazette, the Sullivans invested close to $90,000 in the new space.
Sully’s has had financial struggles since at least 2003. In an email, Dufresne wrote that the taxes Donald Sullivan owed before the seizure dated back to 2003 in some instances, and the state Department of Revenue filed two liens against him in 2004.
One lien was for nearly $65,000 in unpaid taxes, including withholding, sales and meals taxes. The other was for almost $47,000 in unpaid taxes, though the details on those taxes are unavailable.