Fox Creek Wines enters into voluntary administration

This morning, McLaren Vale’s Fox Creek Wines announced the appointment of voluntary administrators, citing ongoing economic pressures that have continued to develop since being purchased by current owners in 2021.

“Since we purchased Fox Creek Wines in January 2021, we have experienced a very challenging period for the Wine Industry,” said Ben Gibson, Sole Director.

“This has included global disruptions from COVID-19, reduced tourism visitation, tariff issues in the China market and then broader economic pressures with increased costs across the business and now the cost of living having a major impact on visitors to our cellar door and sales.”

The economic pressures being experienced by South Australia's wine industry contributed to Riverland wine producer Salena Estate Wines entering into voluntary administration earlier this year. Since then, various Federal and State Government support packages have been announced to help provide aid to the struggling sector.

Fox Creek Wines will continue to operate as usual while the appointed KPMG administrators develop a restructuring plan for creditor consideration.

“The decision to appoint KPMG was made after careful consideration with the best interests of our stakeholders in mind and reflects our ongoing commitment to sustainability and long-term success during a challenging time for the wine industry,” said Gibson.

“KPMG will oversee a comprehensive review of our business operations and financial structure, with the primary objective of brand sustainability and ensuring strong financial stability”.

Tim Mableson, Turnaround & Restructuring Partner at KPMG Australia, added: “Fox Creek Wines has been a mainstay of the McLaren Vale wine region for the past thirty years. As Administrators, we will be working with stakeholders to formulate a restructuring plan that achieves the most optimal outcome for creditors.”

Both Ben Gibson and Tim Mableson expressed their wishes for consumers and trade to continue supporting Fox Creek during this time.

Gibson said, “we greatly appreciate the support of our Fox Creek Wines community during this time. Your loyalty is vital to our future success, and we’re confident that with these steps, we’ll build an even stronger foundation for the future… With the support of the Administrators, we are determined to continue producing the wines our customers love.”

Mabeson added, “we ask consumers to show their support for Fox Creek by purchasing its award-winning wine to help ensure this iconic Australian business survives and thrives.”

All suppliers, customers and key stakeholders will be contacted in the coming days, with a meeting of creditors scheduled for 3:00pm 30 October, ACDT.