Accolade Wines is moving forward with its recapitalization plan. The Australian wine group has announced that Australian Wine Holdco Limited (AWL) will take an equity stake in Accolade, which means that existing shareholders will lose their controlling role.
The primary objective of the recapitalization plan is to significantly reduce the company's debt. The involvement of AWL is not expected to have immediate effects on Accolade's operations, employee count, or existing relationships with customers and suppliers. In November 2023, the Financial Review reported on a loan due in 2025 amounting to AU$572m (circa US$37m) and a revolving credit due by the end of June 2024 of AU$150m (circa US$98m).
Robert Foye, CEO of Accolade, acknowledges that a "non-sustainable balance sheet" has recently hindered the company's ability to appropriately respond to global market challenges. Details on the last fiscal year were not disclosed in the press release. In 2023, Accolade had already sold the Tasmanian sparkling wine estate House of Arras.
“Accolade Wines has a long, proud Australian history as a world-class wine producer and we hope it will remain so for many decades to come,” said an AWL spokesperson. “We hope this restructure, if implemented, will help build a more secure long-term future of the business. We will be working with and supporting Accolade’s management to focus on operations and stakeholders.” No financial details of AWL's investment were disclosed. VM