Photo: Dim Georgiadis, Ben Gibson and Jock Harvey

COVID-19 disruptions, reduced tourist numbers and the impact of China’s wine tariffs have all been noted as factors leading to the decision to appoint administrators to Fox Creek Wines.

KPMG Australia’s Tim Mableson and David Kidman have been appointed as voluntary administrators of the business, which is an award-winning winery located in the McLaren Vale wine region in South Australia, and known for its 19th century stone cottage cellar door.

The administrators have now assumed day-to-day control of Fox Creek Wines’ operations and will continue trading on a business-as-usual basis while a restructuring plan is developed for creditors’ consideration later in the administration process.

“Fox Creek Wines has been a mainstay of the McLaren Vale wine region for the past 30 years. As administrators, we will be working with stakeholders to formulate a restructuring plan that achieves the most optimal outcome for creditors,” said Tim Mableson, turnaround and restructuring partner at KPMG Australia.

“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.”

Ben Gibson, sole director of Fox Creek Wines, explained the decision to appoint administrators.

“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. 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 said.

“Since we purchased Fox Creek Wines in January 2021, we have experienced a very challenging period for the wine industry. 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.

“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.”

“We greatly appreciate the support of our Fox Creek Wines community during this time. 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. Our passion for crafting exceptional wines and providing a memorable cellar door experience remains unchanged, and we look forward to continuing this journey together,”

The iconic Fox Creek Wines was established in 1984 by Helen and Dr Jim Watts following their purchase of the property on Malpas Road in McLaren Vale, and it subsequently won numerous domestic and international wine awards, along with being recognised by James Halliday as a five-star rated winery.

Long-time mates and industry colleagues Ben Gibson, Jock Harvey and Dim Georgiadis purchased the winery in early 2021.

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