Happier days for Kenneth Gundlach: Bordeaux Fine Wines Ltd
sponsored the ROA (Race Horse Owners) Horseracing Awards in 2012
Bordeaux Fine Wines Limited - in Liquidation
‘The Company was placed into formal liquidation at the hearing today (26 February 2014) in the Companies Court (High Court, London) on the grounds it is expedient in the public interest on the basis it just and equitable for it to be so under Section 124(a) of The Insolvency Act. The petition brought by the Department for Business, Innovation & Skills had been supported by four creditors with claims totalling c£2,582,000.
The director was not present however the Winding Up Order was not contested. In a statement read out by the Registrar to the Court Mr Gundlach admitted that the Company had purchased insufficient wine to fulfil customer orders. Wine prices had again, according to the director, been inflated by 60% although an investigator had suggested this to be more in the region of 350% given much of the wine had not actually been purchased. The Registrar further commented “It is clear from evidence before me that they did not purchase sufficient wine to fulfil orders”.
The level of indebtedness to the Company could not be quantified at the hearing with The Public Interest Unit suggesting at least £8m as being due to investors as well as HMRC’s claim in the proceedings being c£8m. The director in response to the Public Interest Unit had previously stated “On current allocation £12m of investors will not get wine”.
It was reported in court that the Metropolitan Police have been investigating.
A meeting of creditors will now take place in London at The Official Receivers Office, 2nd Floor, 4 Abbey Orchard Street, London, SW1P 2HT. The potential date put to the hearing was 14 March 2014 at 15.00 specifically to appoint an insolvency practitioner, however this date has yet to be confirmed. The Official Receiver has deemed it appropriate to convene such a meeting given the unknown level of creditors to further ascertain creditor wishes. It should be noted the director is not duty bound to attend the meeting and it is thought highly unlikely he would do so.
Jim:
I’m very grateful to Samantha Street of Grant Thornton for the above summary of this morning’s hearing. If Kenneth Gundlach, the sole director of Bordeaux Fine Wines, is correct in his estimate that investors will not see £12 million worth of wine they purchased, then this is a very substantial shortage. The shortage in last year’s Nouveau World Wines/Finbow totaled some £4.5 million.
Grant Thornton
(I’m happy to post this message on behalf of Grant Thornton for information. Any other insolvency practitioners looking to act as liquidator to Bordeaux Fine Wines Ltd can contact me about posting a similar notice.)
'David Ingram of Grant Thornton UK LLP has been nominated to act as Liquidator by other creditors and as such should anyone involved in the purchase of wine through Bordeaux Fine Wines wish to understand how Grant Thornton UK LLP can represent their interests in this matter please do contact Samantha Street, a manager at Grant Thornton, at samantha.j.street@uk.gt.comor alternatively 0207 728 2651.
Grant Thornton have successfully dealt with a number of wine investment companies making good recoveries for investors noting there will be no charge to investors in making a nomination for David Ingram to be appointed to act.
FInD specialise in tracing and recovering assets and are a national team together with an international reach with a presence in all offshore financial centres. They have recovered assets from many jurisdictions and are currently successfully recovering monies for victims of various investment scams, including off plan property developments, mortgage fraud and boiler room fraud, in the UK, Spain, Caribbean, USA, the Middle East and other overseas jurisdictions.
For further information regarding Grant Thornton's insolvency investigation services please visit http://www.grant-thornton.co.uk/en/Services/Recovery--Reorganisation/Fraud-Insolvency-Division-FInD/'