McLaren Vale’s Fox Creek Wines comes out fighting as administrators seek restructure plan

South Australia’s Fox Creek Wines, an award-winning winery and popular events venue in McLaren Vale, has been placed into voluntary administration with the company blaming a raft of issues stemming as far back as the pandemic and Chinese tariffs for its financial woes.

However, the administrators have urged customers to continue supporting the business while a restructure plan is prepared for creditors.

KPMG Australia’s Tim Mableson and David Kidman have been appointed voluntary administrators, assuming control of three entities within the group.

Fox Creek Wines, which was acquired by business partners and good mates Jock Harvey, Dim Georgiadis and Ben Gibson in 2021 at possibly the worst time for the industry, is known for its nineteenth century stone cottage cellar door, expansive gardens and lawns.

The winery, which has 20ha of vineyards across the 46ha estate located between the townships of McLaren Vale and Willunga, was acquired from Helen and Jim Watts who established the business in 1994.

Fox Creek Wines is well known in McLaren Vale for its live music events and as a popular weekend destination for locals and tourists alike.

The business will continue operating as usual during the administration process with the owners confident that the business can be rescued.

“Fox Creek Wines has been a mainstay of the McLaren Vale wine region for the past 30 years,” says Mableson, turnaround and restructuring partner at KPMG Australia.

“As administrators, we will be working with stakeholders to formulate a restructuring plan that achieves the most optimal outcome for creditors.

“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.”

The voluntary administrators are in charge of Bibere Australian Beverages Pty Ltd, Crescere Australian Vineyards Pty Ltd and Opportuna Investments Pty Ltd – the three companies that control the Fox Creek Wines operation.

“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,” says Gibson, the sole director of Fox Creek Wines

“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.”

Gibson says since the partners' purchase of Fox Creek Wines in January 2021, the wine industry has experience “a very challenging period”.

“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,” he says.

“With the support of the administrators, we are determined to continue producing the wines our customers love. We remain dedicated to our employees, customers, and suppliers, and will keep everyone informed throughout this process.”

Gibson adds that his team appreciates the support received so far from the Fox Creek Wines community during the administration.

“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,” he says.

“Our passion for crafting exceptional wines and providing a memorable cellar door experience remains unchanged, and we look forward to continuing this journey together.”