McLaren Vale wine producer Aramis Vineyards is in the hands of administrators.
Chief financial officer George Tsiakiridis told The Advertiser the winery continued to trade and “there is no intention to wind up the business”.
Mr Tsiakiridis told the newspaper that members of the Flourentzou family were putting together a deed of company arrangement proposal for creditors.
Two weeks ago another McLaren Vale winery, Simon Hackett Wines, collapsed following a winding-up application brought by the Australian Taxation Office.
Twelve months ago Fox Creek Wines in McLaren Vale went into voluntary administration, owing $10 million. In August Maxwell Wines bought the Fox Creek brand and inventory.
Aramis Vineyards owes unsecured creditors close to $1.5 million including to the ATO, according to a report in The Advertiser.
The collapse comes almost 30 years since Lee Flourentzou bought the vineyard, near Aldinga.
Mr Tsiakiridis said “recent unprofitable trading caused by industry-wide issues and the resultant build-up of inventory” had forced the company to appoint administrators.
The Aramis website says, “Owner and operator of a wine distribution organisation established in 1998, Lee Flourentzou has an affinity for food, wine, music and hospitality that it is partly attributable to his Greek heritage.
“A man blessed with seemingly boundless energy as well as eclectic interests, his enthusiasm has seen him take on numerous roles with an entrepreneurial spirit, including wine, food and music.
“However, wine is unequivocally Lee’s chief interest, and a long-nurtured ambition to create a high-quality wine of his own crystallised in 1998 with the selection and purchase of a vineyard block near Aldinga, on the fringe of the McLaren Vale wine region.”
The Advertiser said the first creditors meeting is on Wednesday.
The Australian wine industry has had five years of major challenges including Covid, the loss of the China market, an oversupply and falling wine consumption across the world.