Thursday, October 4, 2012

The Crush Pad Quandry

Recently Crush Pad the custom producer of individual wine producers has gone out of business.  This has caused all of the clients to be in limbo as to how to retain ownership of their barrels of wine and continue to get them into bottle.  There are many questions to be asked and answered in this issue.

My first issue is the cost of being an absentee wine maker.  The out of pocket cost of even a modest wine is so much more than you would pay for a wine of comparable commercial quality. The only thing you are getting is a finished bottle of wine with your name on it.  Your ego is costing you a lot of money !!!  This is the second time Crush Pad has closed its doors.  A few years ago they left San Francisco and sold off all their old inventory and it was a field day of very good buys at the expense of those people who were not able to finish their wines.  They lost all of their money and Crush Pad sold off their wines.

It now appears that people who have wine in barrel are not able to get their wine since Crush Pad is in debt to many growers and other industry providers.  The wine is now being held as an asset against all of the claims by people who are owed money.  It is possible that some people will lose their barrels of wine and the money they have invested to this point. The best possible senario is that the court will allow the owners of wine to gain access to what is theirs after paying more money.  The worst case is that the court will declare all of their assets part of the liquidation and sell them off to the highest buyer. So much for your home made wine with expert guidance. This is the classic  case of  no one wins..

My advise is to skip this type of operation and continue to buy smart.

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