Large wine conglomerate is going bankrupt. What does it mean for its 10 California wineries?
The parent company of San Luis Obispo County’s own Laetitia Vineyard and Winery has filed for bankruptcy, leaving Laetitia’s future in doubt and its employees facing layoffs.
Vintage Wine Estates announced the bankruptcy filing on Wednesday. The company is one of the largest wine conglomerates in the United States, with more than 10 California wineries under its umbrella including the Arroyo Grande property.
Vintage bought Laetitia in 2019 shortly prior to going public on the stock market.
The Santa Rosa-based company has been showing signs of struggle for months, with Laetitia being just one of multiple Vintage wineries to close their tasting rooms earlier this year.
Vintage expects commercial operations to “continue largely business-as-usual” during the bankruptcy proceedings, the company said in a news release about its bankruptcy filing, but it is unclear exactly what this means for Laetitia and its other wineries.
The future of Laetitia depends on a buyer stepping up to purchase the bankrupt Vintage for its parts.
In conjunction with its filing for bankruptcy, Vintage has filed a notice for mass layoffs with California authorities after already cutting its workforce by at least 15% earlier this year and 7% in 2023.
Vintage will now slice 377 jobs across 10 locations due to permanent closures, including 20 positions at Laetitia, according to a Worker Adjustment and Retraining Notice. Whether or not those employees will get their jobs back after a potential sale of Vintage’s assets remains to be seen.
Laetitia Vineyard and Winery did not immediately respond to a request for comment.
In the news release, Vintage also said that it sold one of its Napa wineries for $10.5 million to pay help down its existing debt, and it announced its intention to voluntarily delist from the stock market. Vintage’s stock price has plummeted since its initial debut at $9.68 in 2020 to under 10 cents today.
“The decision to file for the voluntary petition for reorganization under chapter 11 was made after a careful evaluation of the company’s financial situation and a determination that it is in the best interests of the company and its stakeholders,” the news release said.
In January, when Vintage Wine Estates announced the 15% staff cuts, the company said it was restructuring its operations and planned to focus on its Premium+ brands, which included Laetitia.
“We expect this transformation to result in a smaller company, but one that can grow sustainably while generating top-quartile industry margins,” Vintage Wine Estates President and CEO Seth Kaufman said in a news release at the time. “We are taking immediate actions now to move toward this vision.”
Deborah K. Pawlowski of Vintage Wine Estates said that Laetitia was a priority brand for the company.
“Laetitia is a prime Central Coast property (where) we have about 1,100 vineyard acres owned and leased,” she said.
Pawlowski said the company chose to temporarily close the local tasting room as they “work to reposition and drive even greater brand desirability.”
Laetitia’s history dates back to 1982, when French Champagne producer Maison Deutz planted its first vineyards in the Arroyo Grande Valley.
Today, according to its website, “The Laetitia estate carries on in the longstanding traditions of Burgundy and Champagne with a focus on small-lot pinot noir and sparkling wines.”
As of Friday, Laetitia Winery’s online store and wine club membership remained open.
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