McWilliam’s Wines: Family ownership to end after creditor vote

McWilliam’s Wines’ creditors have voted in favour of a rescue package proposed by a Melbourne-based global asset management company.

McWilliam’s Wines’ creditors were asked to vote on the future of the company on July 24. Picture: Geoff Ward

THE dynastic McWilliam’s Wines will no longer remain in family hands after creditors of the struggling company voted in favour of a rescue proposal led by Prcstnt Asset Management.

The majority of McWilliam’s Wine’s 300 creditors voted on Friday for a deed of company arrangement that will see unsecured creditors receive full payment of their debts, ongoing employment for all staff and a potential return of the company to existing shareholders.

The 141-year-old company had been in the hands of six generations of the McWilliam’s family, known as one of Australia’s “first families of wine”, before calling in administrators in January citing a changing wine market and declining business performance.

News of the company’s downfall came as a shock to many, despite its financial struggles being well known within the industry.

If all goes to plan, KPMG administrators Gayle Dickerson, Tim Mableson and Ryan Eagle will continue to trade the business until Prcstnt assumes full control of McWilliam’s in October.

McWilliam’s Wines chief executive David Pitt said the past six months had been a challenging journey, from bushfires to voluntary administration to a pandemic.

“We are now very excited to have our future confirmed. The McWilliam’s family for six generations have demonstrated the entrepreneurial spirit required to take on all challenges before them, now myself and the broader team are very much looking forward to working with Prcstnt Asset Management as the new custodians of that legacy to ensure the McWilliam’s brand lives on for future generations within Australian wine heritage,” Mr Pitt said.

“What is additionally exciting is Prcstnt’s focus on the environment and sustainability in everything they do. Consumers in general are extremely conscious of their impact on the environment so if we, as a wine producer, can meet this need then we will be well positioned for success into the future.”

The Melbourne based private equity group is aiming to return McWilliams to profitability “in the immediate term” and expand its business in domestic and export markets.

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