Last week’s Cork & Olive HQ laid off 40 Cork & Olive employees and left the owners of nine franchised locations (and others in development) scrambling for a survival plan. The Orlando franchise location had only been open for a week.
The company line, as reported by the Tampa Bay Business Journal, was that Cork & Olive founder and president Michael Probst “had been working on the assumption a New York hedge fund was going to invest about $3-million in the company. But when the fund insisted on taking a controlling interest, Probst opted to shut down instead.”
Why Would Michael Probst Opt Refuse to Cede Control of an Insolvent Company?
Let’s get this straight: Probst opted to take a poison pill, like some maniac villain lover from a 3rd rate movie (If I can’t have her, NO ONE WILL!)? That didn’t make any sense, since surely the stranded franchisees could come after him for wooing – then abandoning – them. No… Probst’s need to close and declare bankruptcy continues to become clearer with the information being posted here, which alleges that Probst, Cork & Olive Franchise Corp., and affiliate Estate Wine Group were the target of several lawsuits and already owed on judgements in excess of $1 Million.
Will the Cork & Olive franchise owners band together and carry on? Will they overcome this temporary setback and become more successful with Michael Probst? We’re pulling for them. Stay tuned for the next episode of Days of Wine & Franchises… here on UnhappyFranchisee.com
FranchisePick.Com: Cork & Olive Wine Franchisor Folds; Franchisees Scramble to Survive,
FranchisePick.Com: Cork & Olive Franchise Corp. Collapse: What’s the REAL Story?,
Unhappy Franchisee: What REALLY Uncorked Cork & Olive Franchise Corp? ,
Unhappy Franchisee: Cork & Olive Wine Shop Franchise Owners Left High & Dry
ARE YOU FAMILIAR WITH MICHAEL PROBST & CORK & OLIVE FRANCHISE? WHAT DO YOU THINK? SHARE A COMMENT BELOW.
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View Comments
not for nuthin but the friggin franchise owners are to blame......especially that sarasota guy...back in new york we woulda rubbed him out.....ya don't pay ya don't play............why do we have so much moolah owed to us and now the bastards that put us und-a are cry-in.
pay your friggin bills you dip shits...........whats up with you holdin secret meetins.....fagetaboutit. .....pay mikey what ya owe him...........you good fa nuthin pieces of crap.
Dear Susan,
What???? "Franchise owners are to blame. " Are you serious. I started not to respond to such a stupid comment, but I figured you needed someone to talk to. No doubt you forgot to medicate.
Dear Wanda,
Not to take sides here but..... it is somewhat true that the "franchisees" did owe the company quite bit of money. For whatever reason they "decided" they didn't need pay their bills. Even though "susan" does need to medicate she does have a valid point. And I'm not taking sides with Mr P by a long shot.... but yes it is very true that the franchisees....including the sarasota location didn't pay THEIR bills. ok
I guess the franchisees didn't want to pay their bills because they realized what a shyster Michael was. He was their best friend when he was drooling over the money they were giving him, then ignored their calls and didn't offer help once they opened.
To set the record straight - the Sarasota group had a development agreement for manatee and Sarasota counties. The agreement called for certain obligations to be fulfilled by Michael at very specific intervals. Obviously, these did not happen. The development fee was well more than the disputed A/P account - six figures more.
We're not even factoring in liquidated damages for Michael's inability to procure product for the season and his out right lies about the margins he sold us on. This is in addition to the thousands of dollars he cost us all during build out phase by using his "spec" vendors. When trying to reconcile anything with anyone from corporate you would routinely find the files missing or questions would just go unanswered.
To say the franchisees tanked the company is juvenile at best, and speaks volumes about the incompetence of some of the corporate employees that Michael surrounded himself with. He kept your heads buried in the sand. The truth will come out and he will be tried for his crimes. Stay tuned.
And, a couple of the franchise owners actually stepped in to help find financing
and even a very qualified candidate to buy the company. Michael ran everyone off with his bizarre behavior and cooked books.
Susan??? wow, no need to comment on that. Too bad for Brooklyn.
If I were a franchisee I wouldn't have paid anything either. He didn't perform his end of the 10 year bargain. Well said Rick!
Has anyone thought that when things starts getting a little rougher that Mr. Probst might decide to leave the country? and then he might be home free without any obligations whatsoever??? Does anyone know of a way to make sure that he cannot leave? Do the airlines needs to be alerted or whom ever can be contacted so this cannot happen??? ANY IDEAS??? We cannot allow him to just pick up and leave!
OK, SO Friday is the first hearing for chapter 11, should be interesting. Will update as I learn more. Attornies have been getting earfuls of information on both parties............... should be very interesting wish I could be in the courtroom to offer Mikey a cig and a glass of vinegar.
should somebody contact Ms. Nelson and tell her to stay in Mexico next week while she is on a "retreat." come on! Trust me when I tell you that she is more greedy than we ever thought was possible... and just as greedy as her sugardaddy.
It will be fun to watch Probst sit in court with out a cig in his hand. Hated being around his cloud of smoke.
Let everyone know when the court date is set. Would love to be in the court room.