Fox Creek Wines in McLaren Vale has gone into voluntary administration.
KPMG Australia’s Tim Mableson and David Kidman have been appointed as voluntary administrators.
They have assumed day-to-day control of the operations and will continue trading on a business-as-usual basis while a restructuring plan is developed for creditors’ consideration.
Tim Mableson, Turnaround & Restructuring Partner, KPMG Australia says, “Fox Creek Wines has been a mainstay of the McLaren Vale wine region for the past thirty years.
“As administrators, we will be working with stakeholders to formulate a 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.”
Fox Creek Wines sole director Ben Gibson, says, “The decision to appoint KPMG 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 primary objective of brand sustainability and ensuring strong financial stability.”
Gibson says that since purchasing the business in January 2021 they 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 door and sales,” he says.
“With the support of the administrators, we are determined to continue producing the wines our customers love.
“We remain dedicated to our employees, customers and suppliers, and will keep everyone informed throughout this process.
“We greatly appreciate the support of our Fox Creek Wines community during this time.
“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.
“Our passion for crafting exceptional wines and providing a memorable cellar door experience remains unchanged, and we look forward to continuing this journey together.”
All suppliers, customers and key stakeholders will be contacted in the coming days and a meeting of creditors is scheduled for 30 October 2024 at 3pm.
Fox Creek Wines is an award-winning winery known for its nineteenth century stone cottage cellar door, expansive gardens and lawns and cellar door.
Helen Watts and Dr Jim Watts founded the business in 1984.
Ben Gibson, Jock Harvey and Dim Georgiadis bought Fox Creek in 2020.
It had been on the market for three years.
The appointment of voluntary administrators covers the following entities: Bibere Australian Beverages Pty Ltd, Crescere Australian Vineyards Pty Ltd and Opportuna Investments Pty Ltd.
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