Iconic wine company Cockatoo Ridge, best known for its sparkling whites, has been placed in voluntary administration after a restructure attempt failed.
The South Australian-based company, which also produces dry white wines and red table wines under the Stockman’s Post and NXG brands, is one of many companies battling Australia’s wine and grape glut.
In a brief statement to the Australian Securities Exchange, the directors of Cockatoo Ridge said that it was likely to become insolvent in the third quarter, leading no choice but to enter voluntary administration.
Earlier this month the company announced its attempts to sell its Monash winery, valued at $14.3 million in the company’s June accounts, had fallen through, although the company did manage to lease the winery for a year.
Cockatoo Ridge lost $58.7 million in 2008-09, compared with a $3.9 million loss in the previous corresponding period.
The company has $17.8 million in loan facilities with finance company GE Capital.
Cockatoo Ridge is now in the hands of George Divitkos and Russell Henry Heywood-Smith from BDO Kendalls.
The business will continue to trade for the time being. Divitkos told SmartCompany that he had already received calls from a number of parties interested in the business, but he is also waiting to see whether the directors will propose a deed of comapny arrangement to try and restructure the business.
The collapse underlines the incredible pressure on Australia’s wine growers, with industry leaders including Peter Lehmann Wines managing director Doug Lehmann and Casella Wines chief John Casella, calling for Australia’s vineyards to be slashed by 20%.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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