Vintage Wine Estates wins approval to sell brands to Foley firm

BANKRUPT California-based vintner Vintage Wine Estates won court approval to sell five wine brands, including Bar Dog and Cherry Pie, to billionaire Bill Foley’s wine company.

US bankruptcy judge Mary Walrath said on Aug 20 she would allow the sale of the brands to Foley Family Wines for US$15 million. The buyer owns more than 25 wineries and distilleries, in locations as diverse as New Zealand and Scotland, according to the company’s website.

Foley’s offer came in the form of a stalking horse bid, meaning it is subject to better offers should any materialise in the coming weeks. If competing bids are received, an auction will be held in September, according to court filings.

Vintage Wine Estates filed for Chapter 11 protection from creditors last month in Delaware. The wine producer, one of the largest in the US, operates brands including Swanson, Cosentino and SCV.

Walrath also approved a US$3.6 million sale to Playa Capital Partners for some Vintage assets related to its ACE Cider, the maker of hand-crafted cider drinks at a cidery in Sebastopol, according to ACE’s website.

There will be “several more to come in the coming weeks,” said Heather Lennox, a partner at Jones Day representing Vintage at the hearing, referring to other stalking horse bids. The company has secured buyers for “almost all of the major assets,” she told the judge. BLOOMBERG