Ace Cider founder Jeffrey House has been outbid in his attempt to reclaim the brand after its parent company Vintage Wine Estates (VWE) filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware, according to North Bay Business Journal.
As Playa Capital Ace Holdings, House and equity partner Playa Capital Partners entered a $4 million stalking horse bid in the auction for VWE’s many subsidiaries, which are mostly wineries.
The $7.63 million winning bid is from Cider Leasing LLC and Ace Cider I LLC, which are affiliated with Cleveland-based R.L. Lipton Distributing, a beer distributor whose portfolio includes offerings from Constellation Brands and FIFCO USA.
Playa Capital Ace Holdings bid up to $7.185 million, but bowed out after that, and is now the backup bidder.
Brewbound Insiders will recall that bev-alc auctions have been awarded to backup bidders before, as was the case in the Modern Times auction that ultimately ended with stalking horse bidder Maui Brewing acquiring the brand.
VWE’s Meier’s Wine Cellars Inc., a Cincinnati-based facility that produces Ace for the East Coast, was auctioned to Bartow Ethanol of Florida for $6.25 million, according to North Bay Business Journal.
In the months before the bankruptcy filing, VWE executed several rounds of layoffs across its portfolio.
VWE acquired Ace in November 2021 for $47.4 million, according to MarketScreener. At the time, Ace had been producing nearly 90,000 barrels of cider annually and its annual revenue reached nearly $20 million.
House, who moved to California from the United Kingdom, founded Ace in Sebastopol, California, in 1993.