Shares in the Australian-listed Reynolds Wines have again been suspended after the struggling company called in voluntary administrators.
The wine group, based in New South Wales, has experienced trading troubles for the past year and its present woes are the result of a A$10m tax ruling dating back to its predecessor Cabonne, which acquired Reynolds in 2000.
Reynolds shares last traded at A$0.079 (US$0.05) having listed at A$1 (US$0.64) in mid-1999.
The tax issue aside, wine analysts say the Reynolds’ experience is an instance of the large working capital being the primary issue for small producers.
At the other end of the market, the US wine giant E & J Gallo is gearing up for a major entry into Australia by, according to market rumour, increasing its stake through on-market buys in McGuigan Simeon Wines. Gallo distributes Simeon McGuigan”s Black Swan brand in the US.

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By GlobalData