The Gathering Spot (TGS) and Greenwood are going their separate ways.
According to The Atlanta Journal-Constitution, the separation comes months after the two companies went to court over business disagreements.
“Ultimately the goal is to try to position both of these companies for success,” TGS CEO and Co-founder Ryan Wilson told the outlet. “We wish each other well. Both of these companies play an important role in the community.”
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As previously reported by AFROTECH, in May 2022, Greenwood announced its acquisition of TGS through a partnership that was proposed to “help bridge the racial wealth gap and build community for Black and minority people.”
When the two companies went to court in 2023, it was revealed that the purchase was worth roughly $50 million in cash and Greenwood stock.
In February 2023, TGS owners Wilson and T’Keel “TK” Petersen sued Greenwood for allegedly withholding payments after purchasing the company. By June of the same year, the Greenwood countersued, accusing TGS founders of misconstruing the purchase agreement.
A second suit was filed in July by Wilson, where he cited that Greenwood “engaged in intentional misconduct.” Additionally, he accused the company of withholding a $5 million earn-out payment that reportedly resulted from TGS reaching a $15 million revenue target.
Moreover, as a result of the legal dispute and Petersen stepping down from his position as the club’s chief operating officer, TGS members went public with their concerns. It wasn’t long before both companies announced that the business matters had been settled.
Although the two will no longer participate in business with one another, TGS and Greenwood will maintain their partnership.
Additionally, Wilson disclosed that the decision to make the company independent was “unrelated to the summer’s turmoil.”
Greenwood CEO Ryan Glover will continue to serve as a TGS board member, and the banking institution will remain a shareholder of the organization.
“Both companies remain supportive of each other’s growth as they transition back to operating as separate entities,” said Glover, according to The Atlanta Journal-Constitution. “Greenwood and The Gathering Spot remain committed to the community, continuing to offer innovative solutions and services that foster growth and empowerment.”
Moving forward, Greenwood account holders who pay $200 monthly for the Elevate membership will retain access to TGS locations in Atlanta, GA, Los Angeles, CA, and Washington, D.C.