SANTA ROSA, CA — Minority shareholders of Wine Hooligans, LLC today announced their opposition to what they characterize as a severely flawed auction process for the company’s assets, scheduled for February 13 by Bronco Wine Company’s subsidiary, West Coast Credit Services. The shareholders detail a troubling pattern of corporate governance issues under Bronco’s new management that they believe has put shareholder value at risk.
“Just days ago, Bronco’s new CEO explicitly encouraged Wine Hooligans to proceed with business as usual, including signing new contracts and representing the company’s brands at the industry’s largest trade show,” said Mark Dawson, representing the minority shareholders. “On the very same day, without Wine Hooligan’s knowledge, they issued notices announcing this auction. This type of contradictory direction raises serious questions about their intent and their compliance with basic fiduciary duties.”
The shareholders outline multiple concerning actions by Bronco’s new management, including:
- Unilaterally removing and replacing board members in violation of the Operating Agreement
- Refusing to engage with or vote on viable proposals to address the company’s debt obligations
- Conducting an auction without proper asset disclosure or industry notification
- Failing to provide requested guidance on debt management despite the loan’s 2026 maturity date
- Encouraging new business commitments while simultaneously planning an immediate asset sale
A group of minority shareholders, working with Strategic Beverage Alliance, LLC, has proposed a solution that would protect all stakeholders. They have offered to pay a seven-figure premium above the $21 million opening bid, requesting only a standard four-week due diligence period – a basic requirement for any transaction of this magnitude.
“Wine Hooligans shareholders built these brands from the ground up into a successful 200,000-case national business,” Dawson added. “The current auction process appears designed to minimize rather than maximize shareholder value. They are prepared to pay a premium price, but we need reasonable time to complete proper due diligence.”
The timing is particularly concerning given recent upheaval in the wine industry. The shareholders emphasize that their goal is to preserve jobs, maintain vendor relationships, and ensure the continued growth of brands including Portlandia, while protecting the interests of all stakeholders.
The minority shareholders have put Bronco on notice regarding these governance issues and are evaluating all available legal options while remaining open to constructive dialogue to resolve the situation.
About Wine Hooligans
Wine Hooligans, LLC is a craft wine company representing a portfolio of distinctive brands including Portlandia, Broadside, and other respected labels. The company maintains national distribution relationships and has built a reputation for quality and innovation in the wine industry.
