Friday, 26 July, 2024
Just Drinks, Jessica Broadbent
US wine group Vintage Wine Estates has filed for bankruptcy and is to voluntarily delist its common stock after failing to pay off $60.5m in debt.
The company plans to sell “all or substantially all” of its assets and said it had already received “multiple preliminary indications of interest” from buyers.
It follows a raft of last-ditch attempts to salvage the publicly listed company’s bank balance – including a round of job cuts in May. Last week, it completed the sale of California-based Cosentino winery and equipment to Gene Wines for $10.5m.
In a stock exchange filing on 24 July, Vintage Wine Estates said: “Over the preceding months, the company experienced negative financial headwinds that severely impacted its liquidity position.
“In response, the company explored several solutions to overcome these challenges, with the monetisation of all assets being the most viable path forward to maximise value.
“The decision to file for the voluntary petition for reorganisation under chapter 11 was made after a careful evaluation of the company’s financial situation and a determination that it is in the best interests of the company and its stakeholders.”
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