Nelson wine company Kahurangi ceases trading after tipped into liquidation
Thursday, 26 February 2026
Nelson wine company Kahurangi Estate Distribution Limited was tipped into liquidation at the end of last year, citing a loss of a significant contract as one of the reasons for its demise, and has ceased trading.
The company, which once owned wine brands Kahurangi Estate and Trout Valley, was first placed into voluntary administration in June 2024, and later placed into liquidation on November 7 last year, with Damien Grant and Adam Botterill of insolvency firm Waterstone appointed liquidators.
The company at that time owed creditors more than $3.4 million.
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Creditors voted to put the company into liquidation, following a voluntary administration process where creditors had approved a deed of company arrangements to pay the scheduled distribution to preferential creditors, including IRD and NZ Customs.
The company made some distributions, but failed to meet its obligations, and administrators were told it would not be able to make the payments.
Kahurangi Estate was a family-owned boutique winery based in Upper Moutere and established in 1998. It continued trading through Christmas and the New Year to sell down remaining stock.
Its well-known wine brands Kahurangi Estate and Trout Valley, sold in supermarkets and liquor stores, were sold to two separate parties as part of the administration and liquidation processes, and remaining operations, such as the distribution business, ceased trading and vacated its premses on Friday.
Peter Drennan of Waterstone said the liquidation appointment was ongoing. “But the sale of wine and the sale of fixed assets was completed on Friday.”
“They were operating as a wine distribution company, so the distribution business is shuttered and won't continue. But the brands will continue to be produced.”
Drennan said the demise of the company was the direct result of oversupply in the wine industry, affecting sales.
“It's a terrible time in the wine industry at the moment. Marlborough in particular has over-produced a large amount of wine.”
He said that internationally the wine market was also oversupplied, with new producers adding to the long‑established European and American ones, which meant wholesale prices were currently very low.
The liquidator’s first report, outlined the wine manufacturer and wholesaler had faced “numerous challenges” that impacted its operations and financial stability, including the Covid-19 pandemic, the loss of a significant contract with NZ Wine Cellars, trade and shipping disruptions, weather disruptions, and the economic downturn.
“Creditors of the company opted to vote for liquidation of the company on the recommendation of the administrators as there was no viable path to a restructuring of the company’s outstanding debts,” the report, published on November 10, said.
Preferential creditor claims totalled $921,605, secured creditor claims $1,299,756, and 42 unsecured creditor claims $1,182,688, according to the report.
It outlined the liquidators had discussed with directors to assess the company’s financial position and the potential for insolvency, prepared an assessment of independence in relation to the appointment, liaised with creditors and stakeholders regarding the administration, attended the company’s premises to assess operations and secure assets, and conducted a preliminary review of the company’s records and financial affairs.
“The liquidators will form a view as to whether any insolvent transactions have occurred or if there have been any breaches of legislation by the company’s officers. Should any breaches of the Act be sufficiently evidenced, such breaches will be reported to the relevant authorities,” the report said.
An investigation into the affairs of the company, including a review of financial records of the company, such as bank statements and other financial records, was ongoing, Drennan told The Post.