A Raleigh restaurateur and an owner of Social House Vodka in Kinston — which received state money to get started — has filed for Chapter 11 bankruptcy protection, according to court filings reported by multiple media outlets.
Gaurav “G” Patel, owner of Eschelon Experiences, filed for bankruptcy this week in North Carolina’s Eastern District, citing liabilities of $2.57 million and assets of $1.1 million, according to court filings, reported by the News & Observer.
Patel is also a partner of Social Beverage Co., which makes Social House Vodka.
Before former Gov. Pat McCrory left office he was quoted in a news release touting a planned distillery in Kinston, made possible — in part — by a performance-based grant, of up to $68,000, from the One North Carolina Fund.
The Social Beverage Company, according to the release, would create 34 new jobs and invest $5.8 million to revitalize a historic property in Kinston over the next three years.
The distillery opened in July 2017.
The distillery sold $400,000 in equity securities from 13 investors, according to a filing with the Securities and Exchange Commission. It also got $200,000 from the N.C. Rural Infrastructure Authority to refurbish a building.
“Eschelon,” the N&O writes, “is the group behind restaurants Mura in North Hills, cocktail bar The Haymaker in downtown Raleigh, the Cameron Bar & Grill in Cameron Village and Edwards Mill Bar & Grill in North Raleigh. In the last year and a half, Echelon has closed Bare Bones, a barbecue restaurant on Fayetteville Street in downtown Raleigh, and Basan, an Asian fusion restaurant in Durham.”
“In email to the N&O, Patel said, “Making the decision to file Chapter 11 bankruptcy was not easy, but it was necessary to protect the future of our employees, our operations and the investments of our shareholders.”
Patel told the paper the bankruptcy — first reported by the Triangle Business Journal — won’t affect his ownership stake in Social House.