Winery owes $2 million – now on the market
A Bannockburn winery has gone into receivership owing more than $2 million to creditors, but receivers hope to preserve the brand and sell up ‘‘lock, stock and barrel’’. Desert Heart Wine Company, established in 2000, was placed in receivership by Kevin Pitfield and Gareth Hoole in July after it failed to repay a loan. The company has five directors and was believed to owe $281,000 to a ‘‘general security agreement’’ holder as well as $1.9 million to unsecured creditors. A receivers’ report said about 5000 cases of wine were held by Cromwell firm Vinpro with an estimated book value of $1.2m. A significant proportion of an accounts receivable ledger with a balance of $440,925 was in arrears when receivers were appointed, the report said. Fixed assets included $255,000 in winery equipment and motor vehicles. The receivers would continue to trade the company in order to ‘‘maximise the potential for repayments to creditors’’ and to preserve the Desert Heart brand. However, they would re-evaluate the position if trading conditions deteriorated and it was not economically viable to continue to operate. They are seeking potential buyers of the wine with a preference toward a ‘‘lock, stock and barrel’’ sale at a ‘‘fair and reasonable’’ market price.
Dry times: Desert Heart Wine Company.