East Lyme - Running $300,000 in the red over the past three years, Frank's Gourmet Grille has closed its doors - at least until the economy recovers, owner Frank Grace said this week.

"It was torture, it was just torture," Grace said about the decision to close the nearly decade-old restaurant in Wynding Hill Plaza off Boston Post Road in the Flanders section of town.

But Grace, who also owns and operates the family-style Main Street Grille in Niantic center where Constantine's restaurant once was located, vowed to start introducing his most popular high-end entrees from Frank's to his downtown clientele and held out hope that he's not done serving the tablecloth and fresh-flowers dinner crowd.

"When the economy bounces back, I will be looking for another location for high-end food again," he said.

Grace said Frank's Grille has been running in the red for the past four calendar years and for the past two years he has been able to stay open largely because of the profits from his other businesses, which include operating the food services at Blackhall Country Club in Old Lyme during the warmer months.

Grace said he had considered filing for bankruptcy but decided against doing so. He wants to pay all his bills, and has worked out payment schedules with many of his creditors, Grace said.

Frank's Grille once employed about 50 people, according to Grace, but was down to only 15 or so at the end. Many of those longtime employees are getting hours at Main Street Grille, he added, though not as many shifts as they once had.

"I moved as much staff as I could," he said. "Laying people off in this economy - it's terrible."

Grace thanked his many loyal customers and asked them to try out Main Street Grille, which has about twice the capacity of his original restaurant. He said the Main Street Grille's specials menu will be incorporating more gourmet fare in the coming weeks and promised that a menu overhaul is on the way that will incorporate many favorites from Frank's Grille.

Frank's Grille got consistently good reviews from statewide publications, including The Day, and was one of the few spots in East Lyme that offered gourmet dining.

"We had a heck of a run," Grace said. "It was wonderful."

l.howard@theday.com