Raleigh restaurateur says bankruptcy filing will not affect current ventures

Gauravkumar "G" Patel filed paperwork with the North Carolina Eastern Bankruptcy Court on Monday.

Posted 9:51 p.m. Jan 22, 2019 — Updated 1:44 p.m. Jan 23, 2019

Kathy Hanrahan, Out

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RALEIGH, N.C. — A popular Raleigh restaurateur has filed for Chapter 11 bankruptcy protection.

Gauravkumar “G” Patel filed paperwork with the North Carolina Eastern Bankruptcy Court on Monday.

Patel is the president and founder of Eschelon Experiences, which operates a number of restaurants in Raleigh, including Mura in North Hills and Cameron Bar and Grill, Edwards Mill Bar and Grill and The Haymaker bar. He previously owned The Oxford, Faire, Bare Bones and Zinda in Raleigh and Basan in Durham , all of which are now closed. He's also one of the co-owners of The Social Beverage Company, which produces Social House Vodka. He also owns a small percentage of Raleigh Raw.

"For the past 15 years, I’ve had tremendous success as a restaurateur and entrepreneur, opening and operating numerous restaurants under Eschelon Experiences. That success has given me the opportunity to employ hundreds of individuals across the Triangle community and support dozens of local non-profit organizations. But the hospitality industry is a tough and risky business to be in. To succeed, the numbers have to work perfectly every time. I’ve taken that risk and have been able to succeed time and time again. But success does not equal perfection," Patel said in a statement released by Eschelon.

In the court filling, Patel indicated that he has assets totaling $1.1 million but owes $2.57 million. His assets include a $750,000 Raleigh home and $10,000 in designer watches.

The debts include more than $548,000 to First National Bank of Pennsylvania, $335,000 to Highwoods Realty and $270,000 to the IRS, according to court documents.

"While the numbers and profitability of many of our restaurants have continuously succeeded, others have not. Over the years, margins were too small for a few of our restaurants forcing us to make the difficult decision to close them permanently—a decision we didn’t make lightly. 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 said.

Filing for Chapter 11 bankruptcy allows the court to reorganize the debt and negotiate terms instead of having to sell off all assets.

Patel said the filing will not affect any of Eschelon's current restaurants.

"And while we do have plans to grow and expand the brand, our 2019 strategy is focused on ensuring that our current restaurants and internal operations are setup to help us continue our success going forward. The future is bright," Patel said.

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