Wine Spectator: Is Crushpad Facing Insolvency?June 22, 2012
Crushpad, the Sonoma-based winery that popularized the idea that anyone can make wine, may be facing insolvency, reports Wine Spectator. The company, which last year saw financial executive and winery owner Bill Foley become principal investor with a $3 million infusion, has asked investors for new capital and has warned that it may not be able to continue operations without fresh funding. Concern is mounting among investors and clients, some of whom worry that if Crushpad closes its doors, they may have problems getting their wines. If the firm can’t find the money to continue operations, it’s not clear how winemakers and commercial wineries that use Crushpad’s facilities would be affected. Some vintners told Wine Spectator they’re concerned about what could happen to their barrels if the company goes under and creditors try to secure assets. One Napa wine broker said he’s working with a few of Crushpad’s clients who are looking to move their wine elsewhere.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.