McLaren Vale wine producer Aramis Vineyards has entered administration with debts exceeding $1 million to the ATO, as global wine consumption declines and the lingering effects of Chinese tariffs and Covid hospitality closures take their toll.
Unsecured creditors are owed nearly $1.5 million, including $1.2 million to the tax office.
George Tsiakiridis, chief financial officer for the Flourentzou family, said the collapse was caused by “recent unprofitable trading caused by industry wide issues and the resultant build up of inventory.”
He added, “Covid closing venues and restaurants directly impacted our ability to wholesale, while China bans and tariff wars impacted our ability to export. A reduction in consumer consumption … has created a market of oversupply and build up of inventory. I think these are issues affecting many in the industry.”
Despite entering administration, Aramis Vineyards continues to trade while the Flourentzou family prepares a deed of company arrangement proposal for creditors.
“There is no intention to wind up the business,” Tsiakiridis said. He also confirmed that the family’s Distinctive Homes construction business is not affected.
Founded in 1998 by owner Lee Flourentzou, Aramis Vineyards owns 26ha of shiraz and cabernet sauvignon near Aldinga, producing award-winning wines including its flagship The Governor shiraz.
The collapse follows similar challenges in the region, including Simon Hackett Wines’ liquidation and Maxwell Wines’ acquisition of Fox Creek Wines after its $10 million collapse.
The first creditors meeting for Aramis Vineyards is scheduled for Wednesday, November 19.
Source: The Advertiser.
