Central Otago wineries are not as attractive to investors as they were two years ago, but that is forecast to change, the receiver of two properties in the district says.
Alexandra's William Hill Winery Ltd and Central Otago Vintners Ltd near Cromwell are both in receivership, for which Wanaka accountant Alistair King, of WHK Cook Adam Ward Wilson, was appointed.
Mr King said both businesses were on the market although they had continued to trade since being placed in receivership - William Hill on May 20 and Central Otago Vintners on September 19 last year.
"The [Central Otago] wine industry is going through a difficult patch due to its large vintage in 2008 combined with the worldwide economic downturn, because wine is a high-price luxury and people aren't spending as much on luxury goods.
"Once the economy turns - and it looks as though that's happening now - there's hope that will change," he said.
A skeleton staff of two and a-half full-time equivalents was working at William Hill in the wine making, marketing, and administration departments based in Alexandra, and the $10 million Vintners pinot noir winery at Ripponvale was being leased to a wine-making company, he said.
Vineyard workers formerly employed by William Hill had been contracted by the company as self-employed workers hired as necessary.
It meant they were able to work on other vineyards and take work at William Hill when it was available, he said.
Recently, two tenders were received on the business, although after consideration neither was accepted.
Mr King said it would continue to be on the market while he and fellow receiver Peter Heenan, also of WHK Cook Adam Ward Wilson, considered the options.
"We are in discussion with appointers [Southland Building Society] as to how we are going to take this forward," he said.
More than $5 million is owed by William Hill to creditors, of which SBS is secured.
An estimated value of land and assets is being kept under wraps by Mr King and Mr Heenan.
At the time it was placed into receivership, Central Otago Vintners owed about $8 million to creditors after difficulties in financing caused its collapse.
Mr King said he and fellow receiver Duncan Fea, also of WHK Cook Adam Ward Wilson, were negotiating a sale of the business at present.
