Greg Schroeder was a wine collector. In order to locate a good wine shop in southern California, he would travel over 35 miles. So he launched Amazing Grapes in Orange County, which grossed $3.5 million the year before he appeared on The Profit. Greg’s issue was that he hadn’t yet earned a profit, and he was hoping Marcus Lemonis might assist. He thought that by partnering with The Profit, Amazing Grapes would be able to increase their margins and start generating money.
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On The Profit, Amazing Grapes
Episode 7 of Season 2 of The Profit
Marcus undoubtedly wishes he had noticed the signs, especially the one outside of Amazing Grapes, which had been dislodged from its hooks right in front of his eyes as he walked in. Things did not improve from there, unfortunately. The shop was crowded with wine cartons, and the place was a shambles.
Marcus took a tour of the factory and spoke with a few of the workers. Greg had vanished, which was reportedly usual practice for the operation. There was a lot of inventory, and Daniel, who introduced himself as the “beer man,” informed Marcus that Greg was in charge of the purchasing process and was always ordering too much.
The wine bar portion seemed out of place as if it were an entirely distinct operation from the rest of the store. Marcus believed that a wine bar in a more central location would encourage consumers to buy the wines they would drink at the bar. Mike was in charge of the kitchen, which he said brought in roughly $500,000 each year. He wasn’t in charge of the design of the layout.
Marcus is a skeptic of firms with absentee owners. Matt, the store manager, revealed that Greg only comes in a couple of times a month to Amazing Grapes. Marcus loved the personnel and believed they were doing a great job with what they had and what they didn’t have to work with.
When The Owner Finally Arrives, He Tells Marcus A Lie
Greg began his engagement with the individual he hoped would give funds and skills to aid his firm by lying to him when he eventually arrived. Marcus inquired as to whether or not operating Amazing Grapes was a full-time job for Greg. Greg defended himself by saying he visits his wine business three or four times a week. When Greg was confronted with the fact that a 3-4 day work week did not even qualify as full-time employment, he simply said that his staff was doing a great job. Marcus then moved on to the financials of the company.
When Greg’s income was insufficient to fund operational expenditures, the fact that Amazing Grapes was producing millions in sales became immaterial. Because the bar was the most successful part of the firm, Marcus proposed lowering the retail area and focusing on the wine bar.
Bill Gary, Greg’s co-owner and financial manager, revealed that their silent partners were afraid to spend further money in the firm after having previously invested over $1 million. Marcus advised that they liquidate the firm to pay off the debts due to suppliers and then close it down. Greg objected to the notion, claiming that he loved the company despite the fact that he was seldom there. Marcus proposed $300,000 in return for 51 percent of the firm, giving him a controlling stake and operational control. The present management team would get 25%, with Greg and Bill receiving the remainder.
Greg accepted the proposal without hesitation and thanked Marcus for rescuing his company. Marcus made sure Greg knew that he would now be in charge of the company’s day-to-day operations. Marcus’ first order of business would be to unload some of the inventory that wasn’t selling and put the money into wine that would.
Turn Off The Music
When Greg’s band played at Amazing Grapes, one staffer confided in Marcus that their clients would be put off by the music and leave. Marcus voiced worry while Greg was putting up the band’s equipment that Greg was not focused on the correct things that would lead to success. Amazing Grapes was losing money both in terms of paying the band and in terms of attracting consumers when they performed.
When Marcus arrived the following morning, he saw that Greg’s band had ejected half of the patrons. Marcus couldn’t contact Greg on the phone to inform him that the band’s final show was at Amazing Grapes.
Marcus got to work on calling contractors without Greg, preparing to close down Amazing Grapes for a major renovation. Greg was displeased with the modifications when he eventually appeared on the program, alleging he had not been consulted despite the fact that he could not be reached.
Greg eventually assured Marcus that he would be more involved with the company, and Marcus stepped into a new Amazing Grapes 45 days later. The kitchen was remodeled to be magnificent, and the floor area was devoted to the wine bar, which was at the heart of the business.
Marcus concluded the program by telling the staff how much he liked working with them and that they were all on their path to being successful and wealthy.
After The Profit, Amazing Grapes
Amazing Grapes was performing very well in the weeks after its national television premiere on The Profit. After realizing that Amazing Grapes had made no online sales while Marcus was still in charge, the whole web division was sacked and replaced. Amazing Grapes seemed to be doing well, with excellent feedback on social media and other review sites.
Amazing Grapes Has Closed Its Doors
From then, everything appeared to go south. Amazing Grapes ceased operating almost three years after Marcus made his first investment.
Dan Isenhart, a former wine buyer, and managing partner at Amazing Grapes announced the closure on Facebook, along with a lengthy list of major complaints and charges leveled against Marcus and his management firm. On Twitter, the two sparred, with each threatening legal action.
While little information concerning the business’s destiny and what really transpired could be confirmed, there is one thing that is indisputable. Amazing Grapes has closed its doors after winning a contract and completing renovations that seemed to be a huge success.
Disclaimer: Royal Pitch is not linked with Amazing Grapes, The Profit, or any of its subsidiaries, and the information offered in this article is only for educational purposes.
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