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News
Vinfolio in the red
Californian-based internet wine retailer Vinfolio has undertaken a restructuring to protect itself from bankruptcy.
The seven year-old company has appointed an assignee, someone who turns assets into cash for the benefit of creditors.
Currently Jon Moramarco, the former head of Constellation Brands, is working to maintain Vinfolio’s business model, through his current role as head of BW 166, a wine industry consultancy firm.
The retailer, which also operates a fine wine service provider, was launched in 2003 by financier Steve Bachmann and was one of the top 15 fastest growing private companies in the San Francisco Bay area between 2006 and 2008.
However, rumours surrounding Vinfolio’s financial difficulties started last month when a client announced on Robert Parker’s website that his Vinfolio cheque had bounced.
The posting prompted an immediate response from Bachmann on his own blog, where he admitted the company was facing an acute cash flow crisis and was having difficulty in sourcing the capital to continue trading.
Bachmann said the company, which had previously raised US$4.5 million in September to fund an expansion into Asia, is said to continue trading as usual during Assignment, a state-level insolvency measure.
Jane Parkinson, 01.02.10