Iconic 97-Year-Old NYC Diner Allegedly Shut Down After Owners Busted in Laundering Scheme

A viral story claiming that New York City's iconic Lexington Candy Shop had been shut down after its owners were arrested in a money laundering scheme has been firmly debunked.

Despite social media chatter, the historic Upper East Side diner, famous for its old-fashioned Coca-Cola floats, remains fully operational and continues to welcome locals and tourists alike.

False Claims Spread Online

The rumours began circulating on unverified social media accounts, alleging that the 97-year-old diner had closed following the arrest of owners John Philis and Bob Karcher for allegedly laundering more than £1.84 million ($2.3 million).

One post on X stated: 'A 97 year old NYC diner that still serves their Coke the old fashioned way has been shut down after owners were arrested for allegedly laundering over £1.84 million(2.3 million dollars).'

The story quickly gained traction online, causing alarm among fans of the historic eatery. However, no credible news organisation reported any such arrests, and there are no police records or official statements to support the claims.

Reuters confirmed the allegations were entirely false.

The Diner's True History

Contrary to the rumours, Lexington Candy Shop was established in 1925, making it a century-old institution in New York City. The viral post incorrectly stated its age as 97 years.

This year, the diner celebrated its 100th anniversary, an event marked with regular customers and social media tributes highlighting the eatery's enduring charm.

Owners John Philis and Bob Karcher continue to oversee operations. The diner was closed on Thanksgiving Day as part of its annual tradition, reopening the following Friday.

Social media posts from the shop itself helped reassure the public that business was continuing as usual.

A Beloved NYC Institution

Lexington Candy Shop is renowned for its nostalgic atmosphere and classic menu, particularly its Coca-Cola floats served the old-fashioned way in glass cups with scoops of ice cream. The diner has long been a staple for locals and tourists alike, and the false reports did little to deter loyal patrons.

Despite the social media frenzy, customer traffic remains steady, and the shop continues to operate with the same dedication to quality and tradition. The myth of a money laundering scandal has done nothing to diminish its reputation as a beloved Upper East Side landmark.

Keeping the Tradition Alive

John Philis and Bob Karcher continue to run the diner with an emphasis on preserving its historic character. The Lexington Candy Shop remains a functioning and welcoming spot for New Yorkers seeking a taste of classic American diner culture.

All claims regarding closure or criminal activity are entirely baseless. As social media misinformation continues to spread rapidly, the diner stands as a reminder that not everything online should be taken at face value.

The historic eatery continues to serve its famous treats, welcoming guests old and new, and proving that even viral rumours cannot shake the legacy of a century-old New York institution.