By: Hal C Clarke

The former owner of Chelsea Wine Shop in New York City, Michael Gancarz, demanded significant discounts on a rare French wine as part of a failed agreement to sell his business, according to an exclusive rep Cort by the NY Post. This unusual deal eventually led to the shop’s closure and legal trouble for Gancarz, who was arrested for burglary and trespassing.

As reported by the NY Post, Gancarz attempted to remove goods from the wine shop he previously owned at 60 Ninth Avenue, following the breakdown of a deal to sell the business. His actions resulted in his arrest by the police, who charged him with burglary, trespassing, and petit larceny.

Documents obtained by the NY Post reveal that the sale agreement included several unusual provisions. Among them was a $1 million, 5-year, interest-free loan, and a clause that allowed Gancarz and his wife, Amelia, to buy Domaine Romanée-Conti (DRC) wines at cost. DRC wines are among the world’s most expensive, often retailing for over $2,000 a bottle. This provision raised eyebrows among industry experts because wine shops usually receive limited allocations of DRC, which are essential for their profitability.

“This kind of provision is unheard of,” an industry insider told the NY Post. “Why would a new owner give away their most profitable wines at cost?”

The saga began last year when Gancarz faced issues with his wine storage business, which was moved to a basement under a TGI Friday’s near Times Square without notifying customers. Clients complained about losing access to their valuable collections, including other pricey Burgundies, which added to the turmoil following the high-profile collapse of Sherry-Lehmann, another Manhattan wine store.

As reported exclusively by the NY Post, amid the chaos, Babek “Bobby” Khorrami, a hospitality entrepreneur, agreed to buy Chelsea Wine from Gancarz for $50,000 upfront. The deal also involved the $1 million loan and the DRC provision. However, the situation deteriorated quickly. On June 15, Gancarz was arrested after allegedly trying to move furniture, wine, and other items from the store. Khorrami called the police, claiming Gancarz arrived with two pickup trucks to take inventory.

Gancarz appeared in court in early July but has not entered a plea. The NY Post reports that he and his wife were behind on rent, prompting the sale to Khorrami. However, tensions arose when Gancarz accused Khorrami of failing to pay the agreed amounts, while Khorrami insisted he paid the initial $50,000.

Meanwhile, the shop’s landlord, Michael Shah, has also criticized Khorrami for not fulfilling his rental obligations. A judge authorized an eviction warrant against Khorrami, and Shah accused him of never applying for the lease or paying rent. Shah has started the eviction process, while Khorrami claims he is negotiating to purchase the building.

Khorrami plans to reopen the space under a new brand, Corvino, and the storefront is being prepared for a relaunch, as reported by the NY Post. However, Khorrami himself faces numerous legal challenges. He has been involved in bankruptcies and lawsuits from investors who claim they were misled. Among these investors is New York restaurateur Robert Nocerino, who lost $270,000 in a failed Florida restaurant venture with Khorrami.

Despite these controversies, Khorrami insists he runs a legitimate business. “I’ve been in this industry for 20 years, and sometimes people won’t be happy,” he told the NY Post. “But we operate transparently.”