Issue link: http://winesandvines.uberflip.com/i/83237
OCT OBER NEWS angry clients and growers. They soon discov- ered just how much more work there would be to restructure the custom-crush company. "There was essentially nothing," Philip Von Burg said of the company's balances. Von Burg and Aaron Hayos' CastleGate Capital Advisors formed a new entity, Structured So- lutions, which bought Crushpad's assets and debts for just under $655,000 at an auc- tion in August. winesandvines.com The auction was Learn more: Search keywords "Nothing left." the final chapter in a tumultuous summer for Crushpad. While denying claims the company was going under, the firm's for- mer management sought a new round of investment that never materialized. Steve Ryan, who joined Crushpad in August 2011 and is now running the new Crushpad Had Nothing Left to Spend S New owners find location in Sonoma, look to restore faith in company onoma, Calif.—The new owners of Crushpad assumed the company's debt and assets at an auction expect- ing to walk into a "hornets' nest" of Structured Solutions now owns Crushpad. company, said that on average clients would need to pay around $2,000 to finish their wine. He said the company has 689 clients, of whom 360 have wine in barrel and 80—including 16 new customers— have contracted for making wine in 2012. Ryan said Crushpad will have a new name, and the firm has moved from Sebas- tiani Winery to the location in an indus- trial and winery area off Eighth Street East in Sonoma. Crush will take place at Napa-based Bin to Bottle this vintage, but Ryan said it would be in-house starting in 2013. Von Burg said the goal is to work with the company's existing clients, reassure growers about the coming vintage and plan for the future. While he de- clined to disclose the number, he said his com- pany has made "a very expensive and size- able" investment in paying the bills to move the company's operations and its customers' wine from Sebastiani to the new location. Founded in San Francisco in Crushpad's single-barrel custom-crush model enjoyed quick success by catering to wealthy wine enthusiasts. The firm's de- mise came with the recession. "The business plan was built on a high level of sales, and as sales eroded they didn't make the proper adjustments on cost structure," Von Burg said. "They con- tinued to invest in the business without making changes to the business model." —Andrew Adams 2004, TRY BEFORE YOU BUY – CONTACT YOUR LOCAL REP TODAY FREE TRIAL OF OUR NEW TANKJET® 55 BARREL CLEANER SUPERIOR SPRAY. SERIOUS RESULTS. TankJet 55 barrel cleaner for cleaning barrels up to 5' (1.5 m) in dia. Take advantage of this risk-free offer to try our new TankJet 55 barrel cleaner in your winery. You'll experience benefits like these: • Powerful cleaning using low flow rates to prevent toast removal and reduce water and chemical use • Fast cycle times enable cleaning of multiple barrels in minutes • Durable construction and use of wear-resistant materials extend service life • Easy to use – compatible with most pumps and pressure washers Try the TankJet 55 today! Call 1-800-95-SPRAY or visit TankJet.com. WINES & VINES OCTOBER 2012 17