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News
Crushpad denies closing
Crushpad, the custom winery, has been reaching out to shareholders to raise capital but won’t be closing its doors, according to the company.
It entered damage control mode after an online article said Crushpad is closing after approaching other wineries to assume contracts amid unsuccessful efforts to raise funds to cover “mounting losses.”
A Wine Industry Insight article said that, “the company was desperately seeking US$500,000 last week in a last-ditch effort to stay alive after the company’s main investor, Bill Foley, refused to underwrite any more of the operation’s mounting losses.”
It quoted sources as blaming Crushpad’s problems on the recession.
The company has called the report “a simplified version of the reality” and denied any mounting losses. They are reported to be working toward paying past debt to particular vendors and reached out to investors for help.
Crushpad also tweeted numerous times that, “Lewis Perdue’s article is neither factual nor accurate. Our doors are open for business as usual. We appreciate your support.”
However, in a further twist the Wine Industry Insight has posted an alleged email from Crushpad chief executive Peter Eckman to investors which states: “If we do not receive sufficient interest, we will be forced to initiate a wind-down process in the very short term.”
Like many wineries, Crushpad saw business decline with the economic situation and moved operations from San Francisco to Napa’s Silverado Trail, then to Sebastiani Winery in Sonoma last year.