The Grape Franchisor Ushers into Bankruptcy Court

According to the Atlanta Journal Constitution, the franchisor of the The Grape wine bar chain has filed for Chapter 11 bankruptcy protection.

The chain has five Atlanta locations and nearly a dozen in other states.

The Grape has more than $2 million in outstanding debts, according to a bankruptcy filing. Two of its executives are owed more than $140,000 in back pay.

The company is asking for a federal bankruptcy judge in Atlanta to approve debtor financing while the company reorganizes.

A spokesperson for the chain couldn’t immediately be reached Thursday night.

The chain was founded by Jack Mazur in Vinings. Michael Coles, former CEO of Caribou Coffee, is a member of the advisory board.

The star Usher made headlines when he opened a franchise of the Grape in Inman Park. His restaurant is not part of the bankruptcy petition.

The Grape’s is not a low franchise investment, costing between $943,000 to $1.4 million to open a Grape franchise.

Will these franchisees get the support they paid for now that the franchisor is struggling to survive?

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