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The French co-operative "Les Vignerons de Buzet" (AOC Buzet, Sud Ouest) has been placed under insolvency administration with debts of almost 36 million euros. A few days ago, a court imposed the "procédure de sauvegarde" creditor protection and reorganisation procedure on the winery. It was previously regarded as one of the most progressive and successful co-operatives in France. It comprises 135 winegrowers and 90 employees.
The local newspaper Sud-Ouest reports that Les Vignerons de Buzet has to service short-term liabilities totalling 18 million euros. "In five years, the debts have risen from four to 36 million euros," the winery's lawyer told the daily newspaper "La Dépêche" on Wednesday. "The problem is that we produced more than we could sell," an anonymous member of the cooperative told the newspaper: "Producing 90,000 hectolitres when you sell 50,000 - that's a big problem."
The company was placed under court supervision for a period of six months. The members of the co-operative are facing the partial or complete abandonment of their vineyards, while the administrator is negotiating with the banks about a partial debt write-off.
(uka / Source: Wine Searcher, La Dêpeche, Sud-Ouest)