Foley and Associates Purchase Key Brands from Vintage Wine Estates in Bankruptcy Auction

Multiple brands including Clos Pegase, Girard, B.R. Cohn, and Swanson Vineyards were put up for sale. Bill Foley recognizes a valuable opportunity when it presents itself. Shortly after Vintage Wine Estates (VWE) in California declared bankruptcy, more than 20 wineries and labels from the company were poised for new ownership following an auction in the U.S. Bankruptcy Court in Delaware. While awaiting final bid approval, Foley Family Wines & Spirits is expected to acquire Swanson Vineyards, Sonoma Coast Vineyards, and Cosentino, along with the Cherry Pie and Bar Dog labels, for $15 million. As detailed by Shanken News Daily, Foley had submitted a stalking horse bid that went unmatched by other competitors.

Jayson Adair of Adair Wines targeted higher-end brands, purchasing Clos Pegase, Girard, B.R. Cohn, Kunde, and Viansa for $85 million. Other notable sales included Laetitia Vineyard & Winery and Owen Roe, acquired by investor Ejnar Knudsen, while Vino.com acquired Layer Cake.

VWE had filed for Chapter 11 bankruptcy in July and voluntarily withdrew from the Nasdaq following unsuccessful efforts to reverse several months of financial instability. Co-founder and longstanding CEO Pat Roney established VWE in 2009 by merging Girard Winery, a Napa Valley establishment he purchased in 2000, with Windsor Vineyards, a Sonoma County producer of bespoke wine labels he and Leslie Rudd, now-deceased founder of Rudd Estate, bought in 2007.

The VWE brand portfolio expanded to encompass over 60 different labels, with the majority of its wines falling into the affordable $10 to $20 range per bottle. Based in Sonoma, the company launched into the public market through a $600 million IPO in 2021. Initially, its stock price surged to $12.63 but subsequently declined and stabilized at $0.11 by the time it declared bankruptcy. The challenge was rejuvenating numerous brands amidst an unstable economic environment and restricted credit access. By February 2023, just 18 months post-IPO, the firm faced severe financial difficulties, prompting Roney to resign from his role as CEO.

VWE possesses and rents approximately 1,850 acres of vineyard land, runs 11 wineries, and maintains nine tasting rooms as per the information in legal documents. The company has 377 staff members. The intentions of the new management remain unclear.

For additional updates on the wine industry, visit Shanken News Daily.

About the Author: Chris Lehoux

Meet Chris Lehoux, an experienced wine connoisseur and dedicated blogger with a deep passion for all things wine-related. With years of expertise in the industry, Chris shares insightful wine reviews, valuable wine tasting tips, expert pairing advice, and captivating tales of vineyard visits. Join Chris on a journey through the world of wine, where every sip is an adventure waiting to be savored!