Cork & Olive Wine Shop Franchise Owners Left High & Dry Michael Probst, franchisor of the Cork & Olive wine shop franchise chain, has shuttered his eight company stores, closed the corporate headquarters and laid off 40 employees.
The nine Cork & Olive franchise owners had an emergency meeting this past Wednesday to figure out how they can survive the demise of their cash-strapped franchisor. The Orlando franchise owner has only been open for a week; other owners in Florida were preparing to open their stores when they got the news.
According to an article in the St. Petersburg Times:
Cork & Olive president Michael Probst said he had been working on the assumption a New York hedge fund was going to invest about $3-million in the company. On Friday, however, the group insisted it take on controlling interest as a condition. Probst balked. On Monday he shut down corporate operations including the headquarters on Race Track Road and company-owned stores in Brandon, Countryside Mall, Largo, Oldsmar, St. Petersburg, Wesley Chapel and South Tampa.
“It’s unfortunate,” Probst said. “We are still trying to get financing, but my conscience would not let me have our people continue working when we were short of money and could not support our franchises.”
Probst started the company in 2004 based on the idea of using wine tastings in a comfortable setting to sell moderately priced wine by the bottle, along with olive oil and spices. Most of the offerings are European, Californian and Australian labels that are thinly distributed in the United States. Cork & Olive, which had a plan for 20 stores soon, started selling franchises in 2006.
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I think it more of the same, just change the name of the franchise du jour....
And I had such high hopes for this franchise!
K
Mike Probst doesn't care about his 40 employees he fired or all the money the franchisees have spent. He only cares about himself. I looked his name up in myflorida.com and found out he has a judgement filed against him and the company for $800,000. and another one for 30,000. He also sold franchises when he had pending lawsuits against him and the company. He is the worst kind of human. He preys on people that want a better life for themselves and their families. Instead of him giving up controlling interest he would rather put these good peoples lives and families in jepardy. So as I see it he should go to jail. Why isn't the FTC stepping in and finding out why he was able to sell to innocent people when he knew the company was going under?
Cork and Olive is supposed to be bringing in their wine from small vineyards, the company brings it in through Probst other company Vinocean Corp. which is owned by Probst and his friend Rainer Appold, but of course Probst isn't listed as an owner??? Why because that would be illegal.
Wanda,
would you mind contacting one of the franchisees from either valrico, sarasota or lakeland??
we would very much like to talk to you.
Thank you
Just wanted to know if anyone from the state attorneys office has looked into this company and Probst business practices.
He mentioned a number of times how "he" imported the wine in. That is a no no. Can't legally import, distribute and sell. Also he has many notes owed to people that loaned him money to build the stores, (high monthly payments) and was heard saying he would pay them very little and then when they got very upset he would offer them a small settlement. This he said is how you do it, "they will take anything if they think they aren't going to get anything"
Also he is currently in several lawsuits with stock holders in Estate Wine Group and Cork and Olive Franchise Corp., and him personally.
Sometimes even CON MEN come up with a good concept. Too bad he hurt so many people along the way. He doesn't care that the franchisees have taken out loans, mtg. their homes and don't forget signed personally for five year leases for their stores. On the website it states the cost for a franchise is up to $311,000. but it cost so much more. How does he sleep at night and why isn't he in jail?
Michael Probts is a crook. I feel horrible about what happened to the employees. He doesn't care about anyone but himself. He owes many people a lot of money. What kind of company sells junk bonds. He fired his former CEO, because he wouldn't comply to the illegal practices. He will be doing a lot of time in prison, hope the little man finds a big protective boyfriend.
-Don't drop the soap Michael.
Wanda,
Are you a former employee? Why didn't the litigations go public? How was this kept a secret for so long.
What is going to happen to the franchises that were sold? Will they be able to stay in business especially after the name Cork&Olive has been destroyed?
I am not at liberty to say about possible employment. But, I do have insider knowledge. Today I was informed the ABT has an order that C&O can not purchase wine or sell wine.
There are other franchise concepts and brands that survived the collapse of their franchisor. In this case, the franchisees may be better off without Probst - and royalties. One way is to form a franchisee co-op that acts like the franchisor (in some functions) but is owned collectively by the franchisees.
The Ground Round restaurant chain did this successfully not that long ago. Straw Hat Pizza did it many years ago and survived. Franchisees should look into the Ground Round case and possibly talk to the attorney Craig Tractenberg who put it together. If the concept is viable and franchisees can gain control of the intellectual property, this would be a good way to go. If you'd like contact info for Tractenberg and for someone who puts together franchisee marketing co-ops, email unhappyfranchisee[at]gmail.com.
Use that email address to send links, documents and information you'd like to share about Probst, the other lawsuits and the Cork & Olive. I'll be setting up a Cork & Olive category here where you are free to post and discuss your situation. FranchisePick.com is a high traffic franchisee-friendly site that's widely read by the franchise industry and media. Get them good info and they'll get the word out.