McLaren Vale winery appoints administrators
Nearly four years after three wine industry figures acquired the brand, a well-known South Australian winery has appointed administrators.
Fox Creek Wines has appointed voluntary administrators, citing reduced tourism visitation, the impact of Chinese tariffs on the business and broader economic pressures.
KPMG’s Tim Mableson and David Kidman have been appointed voluntary administrators of the business, known for its award-winning wines and nineteenth-century stone cottage cellar door.
The administrators have assumed day-to-day control of the company and will continue trading on a business-as-usual basis while a restructuring plan is developed for the consideration of creditors.
Three prominent wine industry figures Ben Gibson, Jock Harvey and Dim Georgiadis acquired the business in early 2021, including a 1200-tonne winery, 20 hectares of vineyards and the historic cellar door.
The trio bought the business from Helen and Dr Jim Watts, who started Fox Creek Wines in 1984.
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Fox Creek Wines has a varied portfolio from sparkling whites through to Shiraz and is recognised by wine writer James Halliday as a 5-star rated winery.
Fox Creek Wines’ stone cottage dates back to the nineteenth century.
Gibson said the decision to appoint administrators was made “after careful consideration with the best interests of our stakeholders in mind and reflects our ongoing commitment to sustainability and long-term success during a challenging time for the wine industry”.
“KPMG will oversee a comprehensive review of our business operations and financial structure, with the preliminary objective of brand sustainability and ensuring strong financial stability,” Gibson said.
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“Since we purchased Fox Creek Wines in January 2021, we have experienced a very challenging period for the wine industry. This has included global disruptions from COVID-19, reduced tourism visitation, tariff issues in the China market and then broader economic pressures with increased costs across the business and now the cost of living having a major impact on visitors to our cellar doors and sales.
“With the support of the administrators, we are determined to continue producing wines our customers love. We remain dedicated to our employees, customers, and suppliers, and will keep everyone informed throughout this process.”
Gibson said he appreciated the support of the Fox Creek Wines community.
“Your loyalty is vital to our future success, and we’re confident that with these steps, we’ll build an even stronger foundation for the future,” he said.
“Our passion for crafting exceptional wines and providing a memorable cellar door experience remains unchanged, and we look forward to continuing this journey together.”
Mableson urged customers to support the brand during the administration process.
“Fox Creek Wines has been a mainstay of the McLaren Vale wine region for the past thirty years,” KPMG turnaround and restructuring partner Mableson said.
“As administrators, we will be working with stakeholders to formulate a successful restructuring plan that achieves the most optimal outcome for creditors.
“We ask consumers to show their support for Fox Creek by purchasing its award-winning wine to help ensure this iconic Australian business survives and thrives.”
The first meeting of creditors is scheduled for 30 October 2024.
