Wines & Vines Home
   
 
Welcome Guest
LOGIN |  CREATE ACCOUNT
 
ADVERTISEMENT
 
 
 
01.29.2009  
 

Kirkland Ranch Winery in Foreclosure

Management stays on, but many staff let go at troubled Napa operation

 
by Paul Franson
 
 
2000-Acre Kirkland Ranch for Sale
Kirkland Ranch
Napa, Calif -- With its current debt due in December--and still unpaid-- the incumbent lender to the Kirkland Ranch Winery sought a court order and was granted the right to foreclose on the property. Foreclosure proceedings have begun and could take several months before they are final.

Martin Jones, the president, told Wines & Vines that the operation is attempting to work with the lender while it reduces costs and maximizes revenue wherever it can. "We're still in charge of the winemaking and sales," he said.

A staff member elaborated in an e-mail note: "Tuesday, Jan. 27, 2009 was our last day at Kirkland. I have worked for them for three years. All employees have been let go. The winery is still open, with management working only."

The winery has also acted as a custom crush facility for other wineries, and Jones said that a number of other wine companies have wine aging and stored in the facility. "We do believe that the lender intends to close it down in time, but we're not sure of the time frame. We'll know more in the next week."

In the meantime, he's trying to work with the wineries with wine in the building to determine how to deal with it.

Kirkland Ranch has had a checkered history. It was founded with great hope by the Kirkland family, which once owned about 3,000 acres of ranchland in the mountains and hills of southern Napa County.

The winery was built in 1998 and has a permit to produce 200,000 gallons of wine annually, though it has capacity for far more. The cellar can hold 3,000 barrels, and the permit allows retail sales and tastings by appointment. In addition, the permit allows the winery to hold up to 74 events annually in its banquet and meeting facilities, a valuable franchise in Napa County -- although perhaps not so much in this out-of-the-way location on Jamieson Canyon Road (Highway 12).

The winery's location and its strategy as a western-themed winery never seemed to catch on. It was on the route in and out of Napa Valley from the Central Valley, but visitors seemed more anxious to get into the heart of the valley or home rather than stopping there.

A few years ago, it entered an ill-fated partnership with 360 Global, which had also purchased Viansa Winery & Marketplace in Sonoma County. It acquired a half interest in Kirkland Ranch Winery, but in 2006 ran into financial difficulties, losing $24 million in the first six months of 2006 against revenues of only $8 million.

Later that year, Kirkland Ranch Winery filed for protection and reorganization under Chapter 11 of the bankruptcy code, which essentially blocked foreclosure on a $20 million loan from Metropolitan Life. Kirkland Cattle Company also filed for bankruptcy protection because the ranch was collateral for the loan. In 2007, 360 Global filed for bankruptcy protection.

Last year about 2,000 acres of the ranch were sold to Silverado Premium Properties, which plans to file an erosion control plan to plant 300 to 400 acres of winegrapes.

The winery itself and surrounding acreage was recently offered for sale at auction for $22 million, but received no serious offers.
SHARE »
Close
 
Currently no comments posted for this article.
 
CURRENT NEWS INDEX »


 
Wines & Vines Home
 
866.453.9701 | 415.453.9700 | Fax: 415.453.2517
65 Mitchell Blvd., Ste. A San Rafael, CA 94903
info@winesandvines.com
Wine Industry Metrics
 
Off-Premise Sales » Month   12 Months  
March 2013 $546 million
5%
$6,988 million
7%
March 2014 $572 million $7,451 million
     
Direct-to-Consumer Shipments » Month   12 Months  
March 2013 $177 million
20%
$1,483 million
10%
March 2014 $213 million $1,634 million
     
Winery Job Index » Month   12 Months  
March 2013 253
15%
166
27%
March 2014 292 210
     
 
MORE » Released on 04.14.2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Wines & Vines
Packaging Conference
 
Learn More »
 
 

Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

Direct To Consumer
Wine Shipping Report
2014
 
Download full report »
 
 

CALENDAR
  • April 23-26
     
    CABs of Distinction in Paso Robles
     
  • April 26
     
    Siera Pelona Valley wine festival
     
  • April 27
     
    TAPAS Grand Tasting
     
  • April 29
     
    Rendez-Vous Laffort
     
  • MORE »
 

READER COMMENTS
 
Article: Starbucks Expands Wine Sales to More Cities »
 
Pretty amazing that the 1st wines chosen are from Argentina, Italy, and New Zealand! I...
Reader: Jacques Brix
 
Article: Starbucks Expands Wine Sales to More Cities »
 
Given Starbucks commitment to sustainability and global responsibility, I expect this move could be a...
Reader: Guest
 
Article: What to Do About Red Blotch »
 
There is NO correlation with planting density. Also FPS is working on the problem. New...
Reader: Guest
 
Article: Premiere Wine Auction Nets $5.9 million »
 
Thanks for letting us know Janet, we've updated the story. Cheers
Reader: Andrew Adams
 
Article: Will Barrels Go the Way of Floppy Disks? »
 
Fun piece. Particularly enjoyed the three clearly superior attributes of standard barrels, including looking cool...
Reader: Tom Gable
 
 


Directory/Buyer's Guide — Your Wine Industry Marketplace
 
 
WINERY SEARCH
 
 
Advanced Search »
SUPPLIER SEARCH
   by Product
 by Company Name or Brand
 
Browse by Category »
2014 Directory/Buyer's Guide
The Wines & Vines Directory and Buyer's Guide
 
 
EXPANDED ONLINE SEARCH INCLUDED WITH PURCHASE
 
ORDER NOW »
 
LEARN MORE »
 
 
Wines & Vines Magazine
 
 
LEARN MORE »
 
SUBSCRIBE »
 
Digital Edition Now Available!
Wines & Vines Digital Edition Now Available
 
LEARN MORE »
 
ORDER NOW »
 
 
The Wines & Vines Online Marketing System
 
The Industry Standard winery marketing application
 
FREE LIVE DEMO »
 
VIEW VIDEO »
 
 
 
 
Latest Job Listings
 Coordinator, Vineyard ...
 Napa, CA
General Administration and
 Direct Sales Operation...
 Healdsburg, CA
Sales and Marketing
 Direct Shipping Clerk
 Napa, CA
General Administration and
 Lmr Estate Guide
 Saint Helena, CA
DTC, Tasting Room and Retai
 Tasting Room Associate...
 Napa, CA
DTC, Tasting Room and Retai
 Tasting Room Associate...
 Napa, CA
DTC, Tasting Room and Retai
 Cellar Staff
 St. Helena, CA
Winemaking and Production
 Winemaker
 Napa Valley, CA
Winemaking and Production
 California State Sales...
 Healdsburg, CA
Sales and Marketing
 Sales & Marketing Admi...
 Wenatchee, WA
Sales and Marketing
 
More Job Listings >>
Follow Us On:
 
 





Home  |  About Us  |  Editors  |  Subscribe  |  Print Edition  |  Digital Edition

Advertise  |  Site Map  |  Contact Us  |  Privacy Policy
 
 
Copyright © 2001-2014 by Wine Communications Group, Inc. All Rights Reserved.
No material may be reproduced without written permission of the Publisher.
Wines&Vines does not assume any responsibility for any unsolicited manuscripts or materials.