French wine group turns sour

French wine group turns sour

French wine group Chamarré has collapsed into receivership.

Chamarré was placed into receivership on Friday (11 June), according to an announcement to the Paris Stock Exchange.

The group's shares ceased trading last month, following a series of sharp declines stretching back to November last year.
 
Chamarré was set up at the end of 2005 as a marketing vehicle for French wines and news of its demise will be a blow to the industry.

The company and its namesake brand were heralded as the new face of French wine, with the ability to regain ground on New World producers in key markets such as the UK.

Chamarré doubled net sales in 2007, to EUR4.8m (US$5.8m) versus EUR2.3m in 2006, according to the most recent figures for the group.

However, the firm's net losses deepened to EUR4.3m in 2007, compared to EUR2.5m in 2006.