It is understood that Indage UK was unable to raise the funds needed to buy 100% of the Cawston-based winery in Norfolk.
Mark Lansley, CEO of Broadland Wineries, reportedly said on Tuesday that negotiations had come to an end as "certain contractual obligations could not be met".
But Mr Lansley said the future for the company was bright in the light of rising sales, winning business from the supermarkets and returning to profitability.
Broadland Wineries has reportedly won a new contract to bottle the supermarket chain Asda's own-brand wines - a contract the company had held prior to entering administration in March 2006 amid concerns over its trading losses, according to Lansley.
The firm, which has a 75-strong workforce, emerged from administration in early 2007 under a company voluntary arrangement - a private agreement between the company and its creditors.
The deal with Indage would have understandably resulted in speedier repayment of the wineries debts.
The deal was struck in mid-November to buy-out the winery through Indage UK, a division of Indage Vintners Ltd., formerly known as Champagne Indage Ltd. the shareholders of the selling company had agreed to be bought out and the deal was supposed to have been completed by December-end. The bid was made despite the recession engulfing the industry but pre- 26/11 when the terrorist attack paralysed Mumbai.
Efforts by delWine to contact Mr. Ranjit Chougule MD of Indage did not yield any response. delWine had reported the deal in its 264th edition dated November 21, 2008.
The Loxton winery deal in Australia is already in a state of limbo and despite optimistic statements by both parties, it seems extremely difficult for Indage to arrange for the funds and it is also likely to fall through as it does not make sense , especially with the current state of global and Indian economy. |