Crushpad, the custom winery and producer of private micro-production wines, has been reaching out to shareholders to raise capital but won’t be closing its doors, according to its chief executive.
Chief executive Peter Ekman was in damage control mode yesterday after a published report said Crushpad is closing after approaching other wineries and custom crush operations to assume contracts amid unsuccessful efforts to raise funds to cover “mounting losses.”
Eckman called the report, “a simplified version of the reality” and said the company doesn’t have mounting losses. He said the company will book more than $6 million in revenue this year, and has about 16 employees serving about 400 active clients. He said he is working toward paying past debt to “strategic vendors” and reached out to his investors for help.
Like many wineries, Crushpad saw business decline with the recession, and scaled back its plans. Operations moved from San Francisco to a location on Napa’s Silverado Trail, then to Sebastiani Winery in Sonoma last year. Crushpad has been in turnaround mode. "The economy didn't help us or any luxury wineres for a while. But the market has changed, the demand for fine wine is increasing and there is a bright future," Ekman said. “We’re looking at a long list of opportunities.”