Cash crisis: Cork & Olive shuts 8 stores, lays off 40

OLDSMAR — Cork & Olive, a startup trying to capitalize on the wine bar trend, has abruptly closed its headquarters, laid off 40 workers and locked up eight company-owned stores after running into a severe cash shortage.

The closure leaves nine franchisees — one of them the owner of an Orlando store that has been open only a week — scrambling to figure out how to keep their businesses afloat. Also left in the lurch: several other franchisees around Florida who have been preparing to open stores.

"We all want to stay open and the distributors appear willing to provide us product," said Vicki May, co-owner of the Trinity Cork & Olive franchise in Pasco County. "We have to pay our bills."

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.

Comments on this article

by Haven	Jun 6, 2008 2:02 PM
Sounds to me like some franchisees may have quite a lawsuit!

by CheckTheBooks	Jun 6, 2008 2:02 PM
Have they been paying their sales tax? That's what is most important!

by AJ	Jun 6, 2008 2:02 PM
I don't know anything about the wines, but the olive oil private label was excellent. I for one am sorry to see them close.

by sebastion	Jun 6, 2008 2:02 PM
fj: White Zin is so '80's! I bet you drink boxed wine too, huh? A good wine priced under $20 a bottle is quite reasonable.

by Vinny	Jun 6, 2008 2:02 PM
Entrepreneurship 101: VC’s will want controlling interest to provide $3 million.

by wino forevere	Jun 6, 2008 2:02 PM
What a train wreck.

by Hollapeter	Jun 6, 2008 2:01 PM
Can someone please explain to me how C&O was dishonest "to the bitter end"? Aside from posting the signs, how else were they dishonest? Do you even know what you are talking about?!?!

by robert	Jun 6, 2008 2:01 PM
The article was not correct in stating Mr Probst held out for full control. That was never an option.

by ra	Jun 6, 2008 2:01 PM
Well at least the store down the street still sells MD 20/20.

by Deb	Jun 6, 2008 2:01 PM
Forgot to say, what a sorry day it is when 40 people have lost their jobs, and Probst still gets to drive around in his Cadillac and have $300.00 dinners. The franchisees have spent their lifes savings, mortgaged their homes all the while he new it

by shania	Jun 6, 2008 2:01 PM
It sounds like the business plan for this company was flawed from the start. Why didn't Mr. Probst hire a consultant in 2004 to revise/enhance this plan so that the company could be profitable in years to come?

by cherise	Jun 6, 2008 2:01 PM
Politics plays no part in a story like this. The only thing that really matters is that people lost their jobs after being committed to this company and now have nothing but unemployment. I can't believe that Mr. Probst would allow this to happen.

by Arabella	Jun 6, 2008 2:01 PM
First of all, FJ- you have no idea what ur talking about. Go drink your nasty Sutter Home. Secondly, how can you say that they were dishonest? The employees had no idea it was coming. If you can tell me a better way to go about it then please tell us

by jimmy	Jun 6, 2008 2:00 PM
The Orlando franchise needs a good lawyer. He got screwed, sounds like.

by David	Jun 6, 2008 1:56 PM
I was interested in purchasing a franchise in 07, but didn't, thank you God. I was contacted many times after I said no, by Mr. Probst. He had my financials and asked if I wanted to invest. Again Thank you God, I said NO!

by Wanda	Jun 6, 2008 1:56 PM
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???

by Guess What	Jun 6, 2008 1:29 PM
"Florida workers" are generally inept over indulgent addicts with a generally unsubstantiated perception of high self-worth. Feel mistreated by your bosses? It's because you are, in fact, utterly worthless as an employee - and they want you to quit.

by Jay	Jun 5, 2008 9:02 PM
And I forgot, their private labels were AWFUL!!!!!!

by Jay	Jun 5, 2008 9:02 PM
This concept failed because it tried to capitalize on private labels they had made to fit a profile the consumer would like. You cannot run any business like this. People do not go out of their way to buy booze. Its about convenience and quality.

by iknow	Jun 5, 2008 9:01 PM
Several of you are soooo right. They were dishonest with everyone to the bitter end, including posting signs that read "closed for repairs" on the door the day of closing. It's a shame all those people lost jobs for one big ego.

by Regina	Jun 5, 2008 9:00 PM
Ditto Timothy. I also worked for C&O from almost the beginning. It was truly combined teamwork,laughter and good wine that kept us there. And yes we are extremely saddened.Good Luck to all I've worked with.Stay in touch plz! Franchiees will do great!

by timothy	Jun 5, 2008 6:52 PM
The greatest part of working for C&O was being surrounded by so many hard working, dedicated employees. The team never gave up on the company, no matter how difficult the days were. I will always remember the spirit of cooperation and the desire to succeed that kept us together. Thanks to all of you, for making my job such a pleasure.

by Kathleen	Jun 5, 2008 6:51 PM
fj: do yourself a favor and stop drinking that stuff. It's not worth the $4 you're so proud of paying. Good wine really is better tasting and worth the money. Try something else, PLEASE!!!!!

by Bob	Jun 5, 2008 6:50 PM
fj - stick to sams club and spandex and sutter, you obviously have no taste. the shops are beautiful, staffed by very friendly people who are interested in finding wine you like and they go out of their way to please you. I love the Valrico store.

by o-wine	Jun 5, 2008 5:24 PM
The company was under-marketed and micro-managed into oblivion. It's a boutique, not a bargain shop. Probst's ego, not the lack of Sutter Home, caused the failure. Their slogan Good Times, Good Wine, Good People still holds true. Stop the insults.

by fj	Jun 5, 2008 4:58 PM
Osiicks, I like Sutter Home white Zin. It'a only 4 dollars a bottle, and they didn't even have THAT! so they get what they get!! Next sell Sutter,,, Dummies!!

by Osiicks	Jun 5, 2008 4:35 PM
Plenty of democrats out there that don't know how to run a business...not sure what political affiliation has to do with a wine store closing down....

by wine-o	Jun 5, 2008 4:33 PM
Let's remember these franchisees and continue to support them and their business through these tough times.

by Osiicks	Jun 5, 2008 4:33 PM
The wine was mostly under $20 a bottle. Thats pretty affordable unless you like to drink Boones Farm or Mogen David. I think that they are a simply a victim of the economy.

by Alex	Jun 5, 2008 3:14 PM
So instead of giving up operational control, Michael Probst shuts down the business? Typical alpha male, republican robber baron behavior. Go back where you came from, Florida doesn't want or need you.

by Carol	Jun 5, 2008 3:11 PM
Losing controlling interest is better than shutting down the business and leaving franchise owners in a lurch. Sounds like someone's supersize ego got in the way.

by lexi	Jun 5, 2008 3:06 PM
I feel so sorry for the employees that got laid off. I wonder if this Probst guy can sleep now, knowing that he's taken their livelihood away from them. Glad I didn't work there.

by Duane	Jun 5, 2008 2:04 PM
These guys sound like your typical Florida republican business owner, In fact, they are probably pretty much like the people who bought thier franchises. How does it feel to be lied to. Remember it. It's how most Florida workers feel.

by Holly	Jun 5, 2008 2:04 PM
This is quite sad. When I moved downtown St Pete in 2003, this was a regular place to meet people, buy and try new wines! It sounds like bad business decisions were made.

by fj	Jun 5, 2008 2:04 PM
He should have given them controlling interest ...because apparently whatever he's doing Isn't working. I went in that store once, you can't even get affordable wine, that's the key to a successful business, when people can afford your product!