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News Headline June 5, 2009
 
 

Inertia Hopes to Revive New Vine

Software supplier forges 'agreement in principle' to acquire fulfillment company's debt

 
by Jane Firstenfeld
 
Napa, Calif. --The shocking closure just one week ago of consumer-direct fulfillment specialist New Vine Logistics spawned a brief feeding frenzy among competitors hungry to snap up winery customers stranded high--and dry--without access to wines stored at NVL's Napa warehouse. Wines & Vines was approached by several shippers/fulfillment houses wondering how to identify and contact NVL clients, which were not listed on New Vine's website. A reported deal for 1-800-Flowers, owner of the Wine Tasting Network (WTN), to take over NVL fell through almost before it was reported earlier this week. For all your shipping compliance needs see the Wines & Vines Online Buyer's Guide.

Now, however, compliance software veteran Inertia Beverage Co., also of Napa, has stepped in with interim financing and an agreement in principle to assume New Vine's debt from Silicon Valley Bank (SVB). Rob McMillan, SVB division relationship manager and founder, could not supply details, but confirmed that his bank is the senior secured lender to NVL.

Kristi Taaffe, vice president, marketing at Inertia, told Wines & Vines that while no specific timeline has been established to finalize the transaction, "It's not going to be a long process. We're committed to move quickly. We're interested in closing this as soon as possible. It's not months away."

Taaffe explained that Inertia is providing interim funding to the remaining management team at NVL, which is working to define exactly what resources the company needs to resume normal operations. Inertia management will be talking with the skeleton team at New Vine, as well as Copper Peak Logistics, which facilitates its direct-to-trade shipping arm, WineREvolution.com. Inertia, Taaffe said, needs to learn what it will take to continue the New Vine operation, which left as many as 200 wineries temporarily without a functioning direct-shipping channel.

Right now, however, "We're simply providing the funding and doing our due diligence to find out what this looks like," Taaffe said. "We're funding what they need right now to get them back up and operational for their customers."

In a statement, Inertia president and CEO Ted Jansen said, "Operations are already gearing up, and we are confident in the ability of New Vine's operational team and employees to quickly respond."

In light of the press, panic, rumor and innuendo surrounding New Vine's announcement, "It's been a rough week," Taaffe confirmed. "A lot of assumptions were made. We want our clients to have all the information they need, and know that they are protected.
 
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