The Barossa Valley wine company, Torbreck Vineyards, has been placed in administration after it failed to raise A$8.5m from a private equity issue.

The premium-orientated company, which had forecast annual sales of A$10.2m for the current fiscal year and a net profit of $2.5m, owes its principal creditors around A$7m. Michael Dwyer of KPMG, who has been appointed as the administrator, said the banks want to keep the business trading and sell it as a going concern by Christmas.

"We hope to advertise it for sale over the next couple of weeks," Dwyer said. "It's a very good brand and the wines have received international acclaim. It is an icon brand internationally. We've had people ringing us expressing interest although we're not ready yet."