Cork & Olive Franchise: $2.5 Million in Debt?
June 16, 2008 by Sean Kelly
Filed under Business
(FranchisePick.com Franchise Blog) $2.5 million in internal debt for a 4 year old retailer… financed by franchisees? How many corks did founder Michael Probst buy? How many olives? Are we talking solid gold corks? Diamond-encrusted olives? And where are they now?
According to the Orlando Business Journal:
Cork & Olive store closures blamed on financing issues
The bloom is gone at Estate Wine Group Inc., known as Cork & Olive: Company executives shuttered its seven corporate stores last week.
The retailer was founded in 2004 and grew to 16 stores from Clearwater to Orlando, including franchisees. Now, they are left to fend for themselves.
Cork & Olive President Mike Probst, who told the Business Journal in 2005 he wanted to be the Starbucks of wine, says his funding fell through. “I had too much belief in only one source,” he says.
Estate Wine has nearly $500,000 of operational debt and $2 million of internal debt, the latter owed to the franchise corporation. Without an infusion of $3 million, its future is bleak, Probst says.
Commenter James Wilson adds: “In addition to the 2 million of internal debt, the $500,000 of operational debt, Probst also is in debt for the surly dissociation of partnership with [CEO & Investor Tom] Ronzino. Ronzino never received liquidation of the original partnership intentionally ignored by Probst…. Probst commented ‘I had too much belief in only one source,”.One source, is that code word for “the hundreds of individuals you screwed royally?’”
Related stories: Cork & Olive Wine Franchisor Folds; Franchisees Scramble to Survive, Cork & Olive Franchise Corp. Collapse: What’s the REAL Story?, What REALLY Uncorked Cork & Olive Franchise Corp? (Unhappy Franchisee), Cork & Olive Wine Shop Franchise Owners Left High & Dry (Unhappy Franchisee)
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James is so right. What else can be said about him? Probst is just the perfect example of a con artist, not a businessman.
When Ronzino received a compulsory dismissal, Estate Wine Group Inc. should have published their obituary. Once Ronzino, former CEO of Cork&Olive Franchise Corp. disappeared, sales of franchises vanished. In July of 2007, the Tampa Bay Business Journal published an article that stated “Estate Wine Group, Cork & Olive’s parent company, has sold one third of its shares to an Orlando investor, Tom Ronzino…” Ronzino was responsible for the growth of the company, until Ronzino came along, not one franchise had been sold. It has been reported in court records that Ronzino is in litigation with Probst [President of Estate Wine Group, Inc.] for his shares. With Chapter 11 filed late last week, Ronzino unfortunately will never see the shares, & did he ever?
probst, just is the worst of his kind, along with deborah augenti and stephanie nelson. they deserve jail time. i feel sorry for such low life people.
Jun 19, 2008 at 6:17 am
to wanda/josh
just because you are bitter after being fired from c&o you shouldn,t fib. your problem, big ego and empty suit.
Moose:
What are the fibs? Can you be specific?
Yes Moose,
Have we left something out. He is a nice guy right? He loves his wife and child. Oh no that isn’t it. He had several recent affairs, and he doesn’t like his son.
moose
Jun 19, 2008 at 2:02 pm
to wanda / josh
people who know you will understand your bitterness. also you are not out any money . so are you the defender of all of the people who have a legitimate beef. go find a job and move on.
Moose-bull!
Moose, if you don’t have some information that could be useful for either ex-employees or franchisees or the many vendors Michael has scr@wed, keep silent because no one cares what you have to say.
I am one of the screwed they owe me 1125.00 for cleaning services to all of their corporate stores they closed. May not seem like much in the scope of their debt, but I am a one person operation struggling to make the bills. It is a lot of money to me……………
wonder where the info on the $2.5 millionin debt came from when it is actually closer to 5 million! and that’s NO LIE, those who know, know this is true!
Hey Fags, stop playing on the computer with blogs with no pants on and get a life. No one cares about your crying.