Gloucester Ridge for sale

PEMBERTON’S Gloucester Ridge Winery is on the market and a part share, or the whole business, is up for grabs.

Winery founder Don Hancock is hoping to find an investor to buy out the share held by collapsed tourist operation Boat Torque.

If that doesn’t happen soon, Mr Hancock concedes, he may well have to sell his own share.

Boat Torque and Mr Hancock each held a 50 per cent share of the winery, but when Boat Torque fell into receivership in early 2002 its receivers, Ernst and Young, began selling assets.

The ferry and Mulberry Farm businesses were sold about 18 months ago but the winery remains.

Mr Hancock, who has operated the winery for almost 30 years, has made three unsuccessful bids to administrators for Boat Torque, PPB Ashton Read, to acquire the shareholding.

Mr Hancock claims the administrator’s demands were  above market expectations.

He said he had 90 days to find an investor for Boat Torque’s share or the entire wine business could be put into the hands of administrators. 

The Boat Torque collapse has also affected the winery’s sales, according to Mr Hancock.

Before its collapse, Boat Torque touist operations accounted for 25 per cent of Gloucester Ridge’s sales, providing about $50,000 cash a month.

Mr Hancock said that, since the collapse of his business partner,  he had restructured the operation and the vineyard was now a viable concern.

“I’ve put staff off, including my wife. We used to have 19 staff now we have 12. We’ve cut advertising to nothing,” he said.

“We’re cash-flow positive and we have no overdraft.

“Ideally I’d like to get someone to purchase 50 per cent and look at developing accommodation here.”

Mr Hancock said the winery was probably worth about $2 million.

He said Gloucester Ridge had declined in value over the years, a fact he partly blamed on policies adopted by the Manjimup Shire.

These included recent rates hikes for wine tourism operators and a limit on the size of advertising signage, he said.