Any errors in the log? Can you look in the database to see if the groups still exist in the jivegroup table?
It turns out that there is a new property (Group Manager)in ClearSpace 1.1 that I do not believe was in use in 1.0.2 or was changed during the upgrade. The property was set in the upgrade to com.jivesoftware.base.ldap.LdapGroupManager and we are not using LDAP groups.
Thanks for your response.
You can delete that property if you're not using LDAP groups. Go to:
Admin Console --> System --> Management --> System Properties
delete that specific property and then you'll have to restart your app server.