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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You know, I hope the zee's and the zor do OK. I enjoy The Grape.