US – California-based Vintage Wine Estates (VWE) has provided an update on its ongoing restructuring project, revealing that interest in its unwanted assets has exceeded expectations.
The company had previously announced a business reset to concentrate on a core set of super-premium-plus priority brands. While no divestments have been finalized, CEO Seth Kaufmann expressed confidence in the company’s ability to monetize these assets.
The group has received bids for the standalone direct-to-consumer business and certain production services businesses, with a commitment to completing the sales described as “aggressive.”
Kaufman, appointed in July, highlighted the positive response, stating, “The level of interest in our non-core businesses and other assets has exceeded our expectations in terms of the quantity and quality of discussions.
We remain optimistic in our ability to monetize these assets, which will allow us to pay down debt and increase liquidity.”
Vintage Wine Estates affirmed that it is well-positioned to close certain transactions over the next few months. The company is also evaluating interest in other assets, potentially selling opportunistically if offers surpass valuation and return hurdles.
In January, Vintage Wine Estates enlisted Oppenheimer & Co. to assist in offloading assets as part of its strategy to invest in its unique branded wine and cider business.
The company’s lenders have agreed to desist exercising their rights and remedies related to certain defaults under a loan deal, providing flexibility for Vintage Wine Estates to execute the restructuring while working on an amended credit agreement.
CFO Kristina Johnston emphasized the ongoing collaboration with lenders, stating, “Our lenders remain fully engaged with us, and we appreciate the progress we are making with discussions to further amend our credit agreement to reflect our current business operations as we execute our restructuring roadmap and advance asset sales.”
Vintage Wine Estates has been taking measures to cut costs, enhance profitability, and simplify its business, including job cuts.
“This will generate needed focus and allow us to strategically deploy our resources to support a unique branded wine and cider business which we believe can offer accelerated top-line growth,” the company added.
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