On July 24, 2024, Vintage Wine Estates (VWE) filed for bankruptcy. This was announced in a communication from the group to its investors. According to VWE, it was unable to pay outstanding debts totalling $60.5m (approximately €56m). In May 2024, VWE had already expressed doubts about its ability to continue operations.
The company stated that it had experienced "negative financial headwinds" which significantly impacted its liquidity. In response, it sought solutions to address these challenges, with the monetization of all assets appearing to be the most feasible option.
The Fight for Survival Continues
The decision to voluntarily file for Chapter 11 reorganization was made after a thorough evaluation of the company's financial situation. This move is said to be in the best interest of the company and its shareholders.
The court filing aims to "establish a fair, structured process for VWE to address its outstanding debts while pursuing the sale of its assets."
If the petition is granted, it will allow the debtors to propose a reorganization plan to keep the company operational and pay off creditors over time. The court filing aims to "establish a fair, structured process for VWE to address its outstanding debts while pursuing the sale of its assets."
The company also announced that the board of directors has decided to voluntarily end the company's stock listing and securities registration.
Expedited Proceedings
VWE has hired a consulting firm to assist with its strategic options, primarily focusing on asset sales. The company has received various offers from interested parties and is currently evaluating them.
The first action taken was the sale of all assets of the Cosentino Winery in Napa Valley for $10.5m (circa €9.7m) to Gene Wines. Currently. VWE still has ten other wineries, including tourist infrastructure, in its portfolio. VWE also owns brands such as Bar Dog, B.R. Cohn, Cameron Hughes, Cherry Pie, Firesteed, and Clos Pegase. Additionally, the company operates its own wine clubs, tasting rooms, and e-commerce shops.
