Heartland Wines administrators back DOCA after stock writedown

South Australian wine producer Heartland Wines Pty Ltd has entered voluntary administration after its directors concluded that the company’s wine inventory was worth substantially less than its recorded book value. Daniel Lopresti and Anna Agostino of Clifton Hall were appointed voluntary administrators on 15 June 2026, with the business continuing to trade while the administrators consider a proposed deed of company arrangement and pursue opportunities for a sale or recapitalisation.

Heartland had approximately $3.6 million in secured and unsecured liabilities at the date of the appointment, including $1.2 million owed to Westpac Banking Corp, the company’s principal secured creditor, under an overdraft and credit facility.

The company’s financial position reportedly deteriorated after directors reassessed the expected realisable value of its wine inventory. Although the stock had a reported book value of approximately $3.13 million as of 15 June, the directors estimated that it could be realised for about $1.1 million, including goods and services tax. The company had not previously adjusted the inventory balance to reflect its anticipated fair market value.

The administrators attributed the appointment to difficult conditions across the Australian wine industry, including excess supply and weaker consumer demand. Heartland does not produce wine at its own facilities and instead engages third parties to undertake production.

Directors John Collett, Ben Glaetzer and Nick Keukenmeester have proposed a DOCA under which unsecured creditors are expected to receive between approximately 4.5 cents and 5.3 cents in the dollar. The administrators have recommended that creditors approve the proposal as providing a better outcome than an immediate liquidation.

Unrelated trade creditor claims and tax liabilities are estimated at between $140,000 and $175,000. All employees were retained following the appointment, and the administrators said there were no outstanding employee wages or superannuation obligations as of the appointment date.

According to its website, Heartland traces its origins to the late 1990s, when winemaker Ben Glaetzer began sourcing grapes from lesser-known South Australian regions, particularly Langhorne Creek. Glaetzer and industry figures including Scott Collett, Grant Tilbrook and Keukenmeester developed the company into an award-winning producer known mainly for Shiraz and Cabernet Sauvignon wines priced from about $20 to $140.

Related wine producer Glaetzer Wines is not affected by the administration.