The former owner of New York City’s now-defunct Chelsea Wine shop demanded deep discounts on a stratospherically priced French vintage as part of a bizarre, ill-fated agreement to sell the business, The Post has learned.
As reported by The Post, Michael Gancarz was arrested last month for burglary and criminal trespassing after he showed up at the swanky shop he used to run at 60 Ninth Ave. and tried to haul away armloads of goods, according to police.
According to sources, Gancarz appeared unhappy over the progress of a deal to sell the store — an agreement that has gone spectacularly wrong, ending with the shop’s closure after 25 years and trouble with the cops.
A copy of the contract of sale obtained by The Post showed some unusual provisions. In addition to helping Gancarz secure a $1 million, 5-year, interest-free loan, it also called for the buyer of the business to provide Gancarz and his wife Amelia with “the ability to buy DRC at cost.”
“DRC,” according to sources, apparently referred to Domaine Romanee-Conti — a French estate in Burgundy whose wines are judged by many to be the best in the world. Bottles typically retail for upwards of $2,000 each.
While it’s not clear whether the Gancarzes’ plan was to drink the prize booze or resell it, industry sources said the deal provision looked far fetched. That’s because wine stores are only allowed small allotments of DRC if they’re lucky — and depend upon them for the profitability and prestige of their businesses.
“If I’m the new owner I want to keep this allocation and sell it for a good profit,” said a wine expert who did not want to be identified and who wasn’t privy to the transaction. “Basically, Michael and Amelia are trying to require the store to sell its most profitable allocation to them at cost. That’s crazy.”
It’s the latest twist in a saga that has dragged on since last year, when the Gancarzes ran into trouble with their company’s wine storage business, which they had moved to a basement under a TGI Friday’s off Times Square allegedly without informing customers.
Clients cried foul when they allegedly couldnt get access to their prized vintages — including other Burgundys like 2011 Coche-Dury Meursault, which goes for $1,200 a bottle, and Faiveley Batard Montrachet, which sells for $490 a bottle, according to inventory lists viewed by The Post.
Some feared the worst following the high-profile implosion of Sherry-Lehmann, the venerable Manhattan wine store that hasnt returned hundreds of thousands of dollars worth of expensive booze to customers — a case that’s being investigated by the FBI.
“Been a customer for 18 years, now they have gone silent, one panicked Chelsea Wine storage client posted on a wine forum last fall.
Another wrote, I cannot get them to answer emails or phone calls, and I am extremely worried about my collectionsome of my most prized bottles somehow no longer appear in my inventory.
Amid the chaos, hospitality entrepreneur Babek “Bobby” Khorrami agreed to purchase Chelsea Wine from Gancarz for $50,000 upfront, in addition to helping arrange the $1 million loan and agreeing to the bizarre DRC provision.
While the deal to sell the troubled operation was signed and sealed in February, things had apparently taken a bad turn as of last month.
On June 15, Gancarz showed up at the shop — located across the street from the swanky Chelsea Market. Soon thereafter, Khorrami called the cops and Gancarz was arrested on charges of burglary, trespassing and petit larceny, police said.
Gancarz was allegedly “moving furniture, wine, tables, glasses, stanchions, and other items” out of the store, according to a police report.
Khorrami says Gancarz arrived at the building with two pick-up trucks.
“I think some of the other local tenants called the police as well,” Khorrami told The Post.
On July 3, Gancarz appeared in Manhattan Criminal Court at a second arraignment on the charges, dressed in a smart suit and tie when a Post photographer caught his visit on video. He dodged all questions about his case.
He has not yet entered a plea in this case.
Gancarz and Khorrami struck the February deal after Gancarz, who owned the store with his wife Amelia, had fallen behind on rent, according to sources.
Its not clear what caused the relationship to sour, but one source claimed Khorrami never paid out what he said he would, and that, when Gancarz showed up to the shop last month, he was trying to protect his inventory by moving it to the wine storage facility.
Khorrami claims that he paid the initial $50,000 payment.
Gancarz did not respond to requests for comment.
Meanwhile, the Chelsea Wine store’s landlord, Michael Shah alleged Khorrami — despite his tough move to have Gancarz arrested — hasn’t fulfilled his obligations as a tenant.
On May 15, a civil court judge, Rena Malik, authorized a “Warrant of eviction” to be issued, according to court filings.
Bobby never applied to assume the lease or paid a dollar of rent,” Shah told The Post. “His lawyer appeared in court [at the eviction hearing] saying that Bobby would pay the rent.
Shah said he has initiated the process of evicting Khorrami.
Khorrami’s attorney, Louis Chisari, did not return repeated calls and emails from The Post.
Khorrami declined to comment on whether he has a lease for the space.
He claimed he is in discussions to buy the building from Shah.
“At the end of the day we are going to work out a deal with him,” Khoarrami told The Post.
The shop’s liquor license was put into safe keeping with the New York State Liquor Authority on June 4 by the Gancarzes, according to the agency. A business cant operate while the license is inactive, according to the SLA.
Nevertheless, Khorrami appears to be preparing to reopen a new shop as well as a wine bar that the Gancarzes had also been operating below. The store’s windows have been papered over with a message that read “CORVINO COMING SOON.”
The new brand now has a bare-bones website as well as an Instagram account.
Khorrami has a trove of legal problems himself, having spent years mired in bankruptcies and lawsuits from multiple investors who claim they were swindled, court papers show.
“There are a lot of angry feelings against Bobby by people in the hospitality industry,” a source who knows Khorrami said.
At the time of the Chelsea Wine deal, Khorrami was facing multiple lawsuits from investors for restaurants he opened in Delray, Fla. and Rye, NY that went bust.
He ultimately filed for Chapter 7 in 2021 and emerged from bankruptcy last year, according to court records.
“Ive been in business for 20 years and sometimes you are not going to make people happy,” Khorrami told The Post, referring to the the lawsuits.
“But we run a clean business.”
Khorrami also said he had a team of investors for the failed businesses, and claimed he is working with others on the 60 Ninth Ave. business.
New York restaurateur Robert Nocerino told The Post he was introduced to Khorrami through a college friend in late 2021. Khorrami was a partner in a successful Mediterranean restaurant in Rye, NY called Meso and was looking to open an outpost in Delray, Fla., according to Nocerino.
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He flew me down to Florida, Nocerino said. I felt so good about thisinvestment.
The deal went bust in a hurry. After Nocerino invested $270,000 in the Delray outpost, it filed for bankruptcy protection in June 2022 — just eight months after it opened.
Bobby put me in a horrible situation. I lost everything I had, Nocerino said.
Another investor in the Delray outpost, Clark Golestani is suing Khorrami along with other principles in the restaurant for the $250,000 he sunk into the Delray eatery.
That case is pending and was recently stayed by the court because of the personal bankruptcy filings of two of Khorrami’s business partners.
Khorramis business partners in a holding company that owns his restaurants B Conscious Hospitality, LLC also filed for bankruptcy protection, as did the LLC.
