Major NZ Wine retailer in financial trouble...

Craig(NZ) · Post by **Craig(NZ)** » Wed Nov 26, 2008 11:00 am

http://www.nzherald.co.nz/small-business/news/article.cfm?c_id=85&objectid=10545082

The recently advertised wine club a quick means to raise some desperately needed capital?

Those who joined may now be nervous that they wont get anything for their investment?

Bick · Post by **Bick** » Wed Nov 26, 2008 11:17 am

Craig(NZ) wrote:The recently advertised wine club a quick means to raise some desperately needed capital?

I certainly thought it looked like that - one of the reasons I didn't bite. I get my wine from all over anyway and wouldn't have wanted to be shackled to the one store.

Craig(NZ) · Post by **Craig(NZ)** » Wed Nov 26, 2008 11:26 am

Yeah and I have problems sourcing rare wine from them. obviously they give the big fish with the cellars first bite. put my name down for a 96 krug over a year ago and never heard a thing. Turns out i decided it was too expensive when i saw it on the shelf elsewhere but thats beside the point

so to Bick's point stupid to tie yourself to one place. also what is to stop them just raising prices overall over time to negate the advantage sold??
. end up being a GG sale situation where you get 10% off retail prices that are 15% higher than anywhere else to start with??

not putting the boot in though. its a great shop (prob the best) with excellent selection, services and people. i spend a big chunk of my wine budget there and drive from way out east to shop there. hope it pulls through these tough times

Jay60A · Post by **Jay60A** » Wed Nov 26, 2008 11:49 am

Craig(NZ) wrote:not putting the boot in though. its a great shop (prob the best) with excellent selection, services and people. i spend a big chunk of my wine budget there and drive from way out east to shop there. hope it pulls through these tough times

Yup. Is Max still employed tho'? I always wondered why they invested in a ChCh store in these web-enabled days. I suspect they'll be around. Max?

Craig(NZ) · Post by **Craig(NZ)** » Wed Nov 26, 2008 12:30 pm

Yup. Is Max still employed tho'? I always wondered why they invested in a ChCh store in these web-enabled days. I suspect they'll be around. Max?

if the worst comes to the worst jay and you need somewhere to store your wine i can offer non temp controlled conditions with no guarantee of accidental (or otherwise) drinking :lol:

competitive rates too

SueNZ · Post by **SueNZ** » Wed Nov 26, 2008 12:37 pm

Jay60A wrote:Yup. Is Max still employed tho'? I always wondered why they invested in a ChCh store in these web-enabled days. I suspect they'll be around. Max?

I heard Max was let go, or left, some months ago. It was costing FWDC money evey minute that Chch store was open, or so the rumours go. The Herald article seems to confirm that.

As for the luge - has anyone been there? I've looked at it a couple of times from the car park - it would take about 15 mins for the trip up and about 1 min for the trip down. I think it could have been more successful if they had a speedier way of getting people to the top.

Loztralia · Post by **Loztralia** » Wed Nov 26, 2008 12:52 pm

As a financial journalist I think I am qualified to say that the financial advisers of anyone who can say "Even earlier this year, who could see the current economic climate that we're all in now?" need shooting.

bob parsons · Post by **bob parsons** » Wed Nov 26, 2008 1:22 pm

Just heard that Mat Garretson, well-respected Rhone-Ranger from California, is hanging up his boots and moving to greener pastures. Start of the sign of the times folks!

Wizz · Post by **Wizz** » Wed Nov 26, 2008 8:47 pm

Max is alive and well and gainfully engaged, still in the wine industry. heard from him just yesterday.

I'm sure he'll pop in sometime and say hello.

Maximus · Post by **Maximus** » Wed Nov 26, 2008 11:23 pm

Hey folks,

Yep, there to establish, set up and run the ChCh store, only to be made redundant two months after it officially opened. Let there be no illusions about setting up a new business/premises like that; it would have been costing the company money every minute for more than just a few months, but you allow for these things. Isn't the average "break even" point for a new business around three years in retail? Anyway, turns out they expected everything to fall into place and be just like Auckland, when ChCh is very different. That and the fact that they had no money to even invest in ChCh to begin with.

The shop in ChCh was closed last week, though it had been on the cards for much longer. As yet, staff haven't been paid wages, and no South Island customers have been made aware of the store closure (many turning up to the site, then going elsewhere and venting their frustrations). It's a sinking ship. Auckland will go under as well. Given the treatment I received, both during and post redundancy, I can't say that I'm unhappy about the circumstances.

So I had a bit of time off and then landed a job down in Central, managing 30ha of vineyards. The vineyard is where I belong, so it was a spiritual calling. All going really well and it's so nice to be removed from wine retail.

Cheers,

SueNZ · Post by **SueNZ** » Thu Nov 27, 2008 5:47 am

Maximus wrote:So I had a bit of time off and then landed a job down in Central, managing 30ha of vineyards. The vineyard is where I belong, so it was a spiritual calling. All going really well and it's so nice to be removed from wine retail.

Good to hear from you Max. I guess you don't do a V & O degree to end up as a glorified shop assistant. Now you can continue to grow your expertise from the ground up in one of the most dramatically beautiful wine regions in the world.
Cheers,
Sue

SueNZ · Post by **SueNZ** » Thu Nov 27, 2008 5:53 am

Maximus wrote:Isn't the average "break even" point for a new business around three years in retail?

Not sure about retail but I have heard it takes nine years in the winegrowing business. Too many of the new-to-the-scene winegrowers don't realise that and, seeing I've headed on this tangent, I wonder how many of the new and newer producers will consolidate/be taken over in the next few years.

Craig(NZ) · Post by **Craig(NZ)** » Thu Nov 27, 2008 9:17 am

Auckland will go under as well.

the question becomes "Was the 'club' set up asking for up to $1500 up front from customers while they fully knew they were in trouble and the benefit paid for by customers was at foreseeable and unreasonable risk"??

im seeing room for perceived questionable ethics?

SueNZ · Post by **SueNZ** » Thu Nov 27, 2008 9:27 am

Craig(NZ) wrote:
Auckland will go under as well.

the question becomes "Was the 'club' set up asking for up to $1500 up front from customers while they fully knew they were in trouble and the benefit paid for by customers was at foreseeable and unreasonable risk"??

im seeing room for perceived questionable ethics?

One thing for sure, those who did pay to join the 'loyalty club' will be unsecured creditors at the bottom of the long list and one really has to ponder (perhaps not for too long) over that question you ask.

Craig(NZ) · Post by **Craig(NZ)** » Thu Nov 27, 2008 9:42 am

another question "was the club set up entirely as a vehicle to attempt solve liquidity issues"?

Another question that probably doesnt need to much joining the dots to answer

Bick · Post by **Bick** » Thu Nov 27, 2008 10:25 am

I think you're probably right Craig, and I think its very dodgy, when you also consider that when they asked for customers to join their club, they issued an FAQ which included a question along the lines of "Will my money be safe - what if you go bust?" to which an answer was written along the lines of "Don't worry, we're not going anywhere, we've been in business many years and your money will be safe".

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