Cash Flow Problems Cause Harry O’S To Close Down

Harry O’s Groove Gallery closed Sunday, leaving 30 employees out of work and the business owners pondering the future of the restaurant and nightclub.

“I just couldn’t continue to float the thing with the cash flow we had,” said Douglas H. Olson, who owns the business with his father, Douglas C. Olson, who also owns the building. “We just couldn’t put the capital into it.”

Making matters worse, the water main froze and broke sometime between Monday night and Tuesday morning, flooding the building.

Harry O’s Groove Gallery is at 508 E. Third. Five years ago it began as a fresh market, transforming into an upscale restaurant in May of 1997. In May of 1998, the Groove Gallery opened. Paintings by local artists lined the walls and the lounge featured a full bar and live music.

“The biggest challenge for us was trying to figure out what people wanted and trying to afford the bands,” Olson said. “The business was starting to go in the right direction. It’s frustrating because it did feel like we had something going.”

The business’ future is still uncertain, Olson said. Harry O’s could be sold or potentially reopened with new ownership. He’s currently talking to interested parties.

Olson said he and his father will ensure that the employees are paid for their work.