The South Australian based Barossa Valley Estate is the latest prominent Australian wine company to face financial hardship, having been placed in receivership earlier this month.
According to advisory firm McGrathNicol, the company is reported to have debts of $20 million; however it will continue to operate while receivers Sam Davies and Rob Kirman assess the state of the business.
In a statement, Davies said he will work with contract growers and management in order to ensure 2013 grape requirements are fulfilled.
There are plans to sell the business, and McGrathNicol has said that the winery has enough equipment to crush anywhere between 3,000 and 4,000 tonnes of grapes every year.
The Australian wine industry has been struggling of late, mainly due the over abundance of grapes, or grape glut, which has forced producers to lower their prices.
Lower export figures are also to blame, as the Australian dollar is much higher than it once was, which means Australian wines are no longer as affordable in overseas markets.
Victorian wine company, Buller Wines faced administration in early January; meanwhile Casella Wines, producer of well known drop Yellow Tail, reported a loss well into the millions over the 2011-12 financial year period.
There are, however, increased opportunities overseas, with China's taste for top quality wines representing a huge opportunity for Australian producers. To better understand these opportunities Australia’s First Families of Wine (AFFW), a group created by 12 family-owned Australian wineries, is heading to China in September.