Santa Rosa, California-based Vintage Wine Estates, a major wine producer with a portfolio of brands operating in Mendocino, Sonoma, and Napa counties, has announced a mass layoff of all employees as it enters Chapter 11 bankruptcy and attempts to sell all its assets to benefit its creditors.
Approximately 377 employees across 10 locations in four Bay Area counties are impacted by the layoff.
According to a company filing, “If the bankruptcy court approves the sale process, and if one or more buyers ultimately is approved to purchase the company’s assets, the company would cease operations and all VWE employees, at all locations, would be terminated. While we are hopeful that a buyer would hire some of the company’s workforce, we cannot be certain that will occur."
According to Chief Executive Officer Seth Kaufman, “The decreased demand resulted in a surplus of winegrape production in California vineyards, with 375,000 tons of winegrapes going unpicked. Grape growers have torn out or burned acres of vineyards to avoid maintaining unprofitable idle land.”
It also appears that the company suffered from financial engineering manipulations as it attempted to grow by acquisition.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. While many employees can read the writing on the wall; why do most assume it’s targeted at someone else? Are you now wondering, Am I Next?
