Gloucester Ridge auction delayed
The auction of Pemberton winery Gloucester Ridge has been postponed for at least another month after the failure of shareholding parties to reach settlement terms.
Gloucester Ridge owner Don Hancock told WA Business News the winery can’t go under the hammer until terms have been reached with the administrators of his equal share holding partner, Boat Torque, which collapsed in 2002.
“I’ve pulled the pin on it because we couldn’t settle it legally,” Mr Hancock said.
“I have a meeting with PPB (the administrators) on the 22nd where we will nut it out and agree to terms. Then I will readvertise.”
Mr Hancock said both parties were using different formulas to determine the value of the shareholdings.
In the build up to the auction, originally advertised for Friday June 18, Mr Hancock slashed prices on wines that were scheduled for labelling and retail distribution.
Wines such as its 2003 chardonnay and 2003 sauvignon blanc have been discounted about $4 a bottle, and cases of 2001 cabernet merlot and 2002 reserve chardonnay are being sold for $95.
“We’re calculating what we’ve sold over the next day or two but I would say we’ve sold about 1,000 cases,” Mr Hancock said.
“We didn’t have a target and we’ve got plenty more to sell but it’s given us capital to get through winter.”
Mr Hancock, who founded the winery in 1985, said the wine sale would conclude on June 18 and that a decision on a new date for the auction would be set later this month.
“After PPB and I come to terms I will revisit my position and advertise the winery,” he said.
“I’m still confident that a partner will come through and I can bid for it.”
Mr Hancock believes the winery, which includes a restaurant and cellar door, should fetch $2 million.
“We think we may be the first to test the result of the new tax regime,” he told WA Business News.
“That [the wine equalisation tax rebate] comes into effect on October 1 and that will make this winery extremely profitable.”
