The sparkling wine cellar A-Nobis, opened in 2020 by renowned winemaker Norbert Szigeti, was once seen as a beacon of hope for the future of sparkling wine production in Burgenland, Austria.
Located in Zurndorf, the winery aimed to produce up to 250,000 bottles of premium sparkling wine annually. However, just a few years after its ambitious inception, A-Nobis has found itself in the midst of a financial crisis, culminating in an application for restructuring proceedings due to insolvency.
A Bright Beginning and Sudden Setbacks
When Norbert Szigeti opened A-Nobis, he envisioned a state-of-the-art facility that would elevate the quality and profile of Austrian sparkling wine on the international stage. The new building, constructed with an investment of over 8 million EUR, represented a bold move in the competitive world of high-quality sparkling wine. The winery's production was designed to meet growing demand for luxury sparkling wines, with capacity for up to 250,000 bottles annually.
However, despite the impressive new building and ambitious goals, A-Nobis faced financial hurdles that would soon prove insurmountable. The company has cited liquidity issues as the main cause of its insolvency, unable to service the loan installments for the costly new building in Zurndorf. With the sparkling wine business heavily reliant on a significant initial investment, the lack of liquidity and the financial pressure from the new infrastructure have led to an unfortunate downfall.
A State-Sponsored Lifeline: The Burgenland Business Agency's Intervention
In 2023, A-Nobis had already come under the spotlight when the Burgenland Business Agency stepped in to purchase 195,000 bottles of sparkling wine. The state agency made this purchase on behalf of the state to provide immediate financial relief and ensure the winery's solvency. At the time, the transaction was seen as an extraordinary but necessary measure to keep the company afloat.
However, in a surprising twist, the planned repurchase of these goods by Norbert Szigeti is no longer valid. Instead, the state agency has now announced that it is looking for buyers for the raw sparkling wine, which had been put out to recoup the 800,000 EUR spent on the goods. This state intervention, while helpful in the short term, seems to have only delayed the inevitable: Szigeti’s insolvency.
Szigeti has pointed to the corona pandemic as a significant factor in the sluggish sales of his high-priced sparkling wine. The pandemic disrupted both the supply chain and consumer spending, especially for luxury items like premium sparkling wines, which have long been viewed as discretionary purchases.
Financial Struggles: Insolvency and the Restructuring Plan
The financial situation at A-Nobis has reached a critical point. According to reports from the Alpine Creditors Association, the total outstanding liabilities of A-Nobis exceed 6 million EUR, with assets amounting to just 1.2 million EUR. This creates a situation of over-indebtedness of nearly 5 million EUR, making it impossible for the company to meet its financial obligations without restructuring.
In light of this, Szigeti has applied for the opening of restructuring proceedings in order to continue the business. The restructuring plan outlines a proposal to repay 20% of the debt, to be paid in four installments over two years. This plan aims to allow the winery to stabilize its finances while attempting to salvage the business.
A Move Back to Gols and the Role of "Hipster Invest GmbH"
As part of the restructuring, Szigeti is planning to relocate the production back to Gols, where his brother, Peter Szigeti, will continue to produce sparkling wine. The brothers had previously parted ways, with Norbert continuing the business in Zurndorf while Peter remained in Gols. Now, in an attempt to reduce operational costs and minimize the financial burden of the Zurndorf facility, Norbert has decided to shift operations back to Gols.
Meanwhile, the newly built facility in Zurndorf, which was designed for a large-scale operation, is slated to be taken over by a company called Hipster Invest GmbH. The restructuring plan outlines that Hipster Invest GmbH will oversee the management of the property with the goal of maximizing the value of the facility within two years. The ultimate aim is to reduce Szigeti’s debts by up to 4.2 million EUR.
The Human Impact: Employees and Creditors
In addition to the financial burdens, the insolvency proceedings have affected around 70 creditors and 12 employees at A-Nobis. As a result of the financial turmoil, salary payments to employees have been suspended, further complicating an already difficult situation. Many of the creditors, including suppliers, have yet to be paid for goods and services provided to the winery.
The Eisenstadt Regional Court is currently reviewing the application to open the restructuring proceedings. If approved, this process will allow the winery to reorganize its debt and attempt to return to a path of financial stability, albeit with significant sacrifices.
The Future of A-Nobis: Can It Survive?
The future of A-Nobis remains uncertain, but the restructuring proceedings offer a glimmer of hope for the business. With the right mix of financial restructuring and strategic operational changes, it is possible that the company could find a way to survive, albeit on a smaller scale. The decision to relocate production back to Gols, combined with the planned sale of the Zurndorf property, might help the company reduce its overhead costs and improve its cash flow.
However, the path to recovery will be difficult. With a significant portion of the debt still outstanding and a market that remains uncertain, especially for high-priced luxury wines, the next few years will be crucial for A-Nobis. The state’s intervention in 2023 bought the company some time, but it’s now up to Szigeti and his team to navigate the restructuring process and emerge from this financial crisis with a viable plan for the future.
As this situation unfolds, A-Nobis serves as a stark reminder of the volatile nature of the wine industry, where even the best-laid plans can falter in the face of unforeseen circumstances, economic challenges, and global disruptions like the COVID-19 pandemic. Only time will tell whether Szigeti’s ambitious vision for his sparkling wine cellar can withstand the financial pressures and rise again from the brink of insolvency.
Source: Der-Winzer