Pioneering Otago vineyard finds the going too tough

William Hill Winery in Alexandra is open for business despite being placed in receivership. Photo / Otago Daily Times

One of Central Otago's pioneering vineyards first planted in 1973 has been placed in receivership as wineries in the area feel the pinch.

William Hill Winery was put into the hands of receivers this week although it is still trading.

Accountant Alistair King, of WHK Cook Adam Ward Wilson in Wanaka, said receivers had secured all of William Hill's assets and were starting an assessment of the company's financial position.

In the meantime, no employees of William Hill had lost work, as the company continued to trade, King said.

William Hill's website was suspended although the vineyard cellar door in Dunstan Rd, Alexandra, was open for business.

"While we are assessing the company's position we are continuing to trade and people haven't lost jobs or anything like that," King said.

He said the process should take a matter of weeks.

William Hill's assets include the winery, plant, equipment, about 16ha of vines and wine stocks.

Those grape vines, situated across Dunstan Rd from William Hill, were not directly affected by the receivership, he said.

The Shaky Bridge Vineyard Cafe and adjoining block of vines, near the Shaky Bride over the Manuherikia River at Alexandra, were also owned by a separate entity to William Hill and were not affected by the receivership, he said.

However, William Hill owns the Shaky Bridge wine label, which it started to use in 2003 to market and sell its wine overseas.

A Napa Valley winery called William Hill Winery prevented the Alexandra business from using its original name internationally.

In New Zealand William Hill is used as a wine label as well as Shaky Bridge.

William Hill was established in 1973 when founders Bill and Gillian Grant planted the first pinot noir vines. Its first commercial production occurred in 1987.

Meanwhile, another pinot noir winery near Cromwell is being leased to a wine-making company while it is in receivership.

Central Otago Vintners Winery, in Ripponvale Rd, was placed in receivership last year, owing about $8 million to creditors after difficulties in financing caused its collapse.

King said the facility was being leased to a company using it to make wine on contract.

He said he was confident about selling the winery.

"It's still in receivership but we're pretty close to having a successful outcome on a sale."

Several tenders for the property were received in February.

The winery's collapse left about $6 million owed to secured creditors and about $1.2 million to unsecured creditors.

- OTAGO DAILY TIMES