EXHIBIT 99.1


              Avado Brands Comments on Baseless Noteholders' Claim


     Madison,  GA.,  July 1, 2003 - Avado  Brands,  Inc.  (OTC BB:  AVDO)  today
announced that a noteholders' claim, seeking payment acceleration, is completely
without merit.

     "We have met all the terms and  covenants of our debt and there is no basis
for these  noteholders  to seek  payment  acceleration,"  said Louis J.  (Dusty)
Profumo,  Avado's  Chief  Financial  Officer  and  Treasurer.  "As we  announced
earlier,  Avado made its  semi-annual  interest  payments on both its senior and
senior  subordinated  notes that were due in June 2003,  and the  Company  fully
expects to pay the interest  obligations  on its notes due in December  2003 and
beyond. Further, we are in full compliance with all other terms and covenants of
our secured and unsecured debt." Avado's  Chairman and Chief Executive  Officer,
Tom DuPree,  Jr. noted, "We remain focused on our business of providing superior
food and service to our valued  customers  while meeting our  commitments to all
our  stakeholders."

     Avado Brands owns and operates two proprietary brands, comprised of 109 Don
Pablo's Mexican Kitchens and 65 Hops Restaurant o Bar o Breweries. Additionally,
the Company operates two Canyon Cafe restaurants, which are held for sale.

     Statements contained in the press release that are not historical facts are
forward-looking  statements  as that term is defined in the  Private  Securities
Litigation  Reform Act of 1995.  All  forward-looking  statements are subject to
risks and  uncertainties  which could cause actual  results to differ from those
anticipated.   Factors  that  may  cause  actual  results  to  differ  from  the
forward-looking  statements  contained  in this  release and that may affect the
Company's  prospects in general are  described in Exhibit 99.1 to the  Company's
Form 10-Q for the fiscal  quarter ended April 2, 2000,  and the Company's  other
filings with the Securities and Exchange Commission.