US: 360 Global Wine drowning not waving?
By just-drinks.com editorial team | 30 August 2006
360 Global Wine Co. has reported losses for the first half of this year.
The California-based company late last week posted an operating loss of US$24.2m for the first six months of 2006. In May of this year, 360 Global boasted of a first quarter gross profit of US$1.9m, as its purchase of Viansa Winery in Sonoma in July 2005 took effect.
The company blamed the nosedive on stock-based compensation, partly from the purchase of Viansa.
360 Global has subsequently said it is selling Kirkland Knightsbridge, which owns the Kirkland Ranch winery, and is "focusing its concentration on the company's premium wine production and retailing business" - namely Viansa.
In 2004, the company took a half stake in Kirkland, when it guaranteed a US$20m loan - now held by Metropolitan Life - taken out by Kirkland Knightsbridge president Larry Kirkland to expand the winery, with $10m in company stock. In May, Metropolitan Life filed a notice of default, claiming US$22m was outstanding. The wine company has said it cannot make the repayments.
No-one was available for comment at 360 when contacted by just-drinks today (30 August).