Cameron Hughes Wine Inc. has after Vintage Wine Estates purchased the company as part of a bankruptcy court settlement this week, Wine Spectator reported on Friday. The Santa Rosa, Calif., firm emerged as the winner in a blind auction, agreeing to pay $5.5 million in a deal expected to be finalized within weeks. The proceeds will largely go to pay off Hughes Wine's debts with Union Bank. Hughes became a prominent name in the California wine industry during the global wine glut of the past decade. Recognizing that even premium wineries had excess wine, his company bought the wine in bulk, blended and repackaged it under its own label, in various limited series of "lots" and sold it at a discount. A deal with Costco put the wines in front of a loyal customer base who liked the price and quality. But when the excess juice dried up, so did Hughes' business. While the company developed a solid direct-to-consumer sales program, it wasn't enough to stay afloat. On March 24, 2015, the Superior Court of San Francisco placed the company in receivership.
