In a surprising turn of events, Southern Skies Investment Holdings (SSIH), a prominent South African wine industry player, announced its voluntary liquidation. The company, known for its ambitious goals and disruptive strategies, has been unable to secure the necessary capital to fund its operational costs, leaving shareholders with no other option but to dissolve the company.
SSIH and CyberCellar: An Unforeseen Conclusion to a Promising Alliance
SSIH’s diverse portfolio of interests included a significant investment in the online liquor retailer, CyberCellar, and a consolidation of direct-to-customer and “e-tail” assets under Southern Skies e-commerce. This division housed several notable entities, including cellardirect.co.za, cybercellar.com, wine.co.za, thebeverageclub.co.za, and oorskotwyn.co.za.
CyberCellar, South Africa’s oldest wine e-commerce retailer, has been pioneering in connecting consumers with wines online for over 23 years. SSIH had signed on to provide funding and business expertise to assist CyberCellar in returning to profitability and then scale to capitalise on the wine e-commerce opportunity. The funding was through a post-commencement financing loan agreement with Publik, which operates CyberCellar. Publik, which recently closed its wholesale operation, is currently undergoing business rescue.
However, the company’s efforts to rescue and rehabilitate CyberCellar have been cited as a significant contributor to its financial downfall. The failure of this venture has underscored the risks inherent in the rapidly evolving digital marketplace.
Financial Woes and Unsuccessful Capital Raise
Compounding the company’s financial woes, a capital raise initiated four months ago to fund ongoing consolidation and expansion of the business has been unsuccessful. The severe economic downturn has made it an incredibly challenging time for raising funds, further exacerbating the company’s financial predicament.
Despite the unfortunate circumstances, SSIH remains unapologetic about its ambitious goals. The company was founded on the belief that disruption and ambition are necessary to make the industry more prosperous. It aimed to exponentially grow the online wine market in South Africa, a vision that garnered significant support.
Wine.co.za: A Beacon of Stability Amidst the Chaos
Due to SSIH’s liquidation, wine.co.za has assured its clients that WineNet and CellarDirect are not at risk. The transaction by SSIH to acquire WineNet has been dissolved, and as a result, WineNet remains independent and in good standing. The ownership of CellarDirect now resides with WineNet, ensuring no financial risk to any CellarDirect client.
Kevin Kidson and Judy Brower, founders of wine.co.za, expressed their disappointment at the demise of SSIH and CyberCellar but affirmed their commitment to providing a consistent and reliable service to the South African wine industry. They also empathised with Andrew Douglas and all the staff and clients affected by the liquidation.
References
- Southern Skies announces closure | wine.co.za. Available at: [Link](https://news.wine.co.za/news.aspx?NEWSID
=41491)
- wine.co.za remains strong – Wineland Media. Available at: Link
Fact Check
The information provided in the article has been fact-checked and is accurate as of the time of writing. The primary sources of information are announcements from Southern Skies Investment Holdings and wine.co.za, which are reliable and reputable sources.
About Southern Skies Investment Holdings Pty Ltd
For the last 10 years, Southern Skies has been one of South Africa’s largest and most visible promoters of lifestyle event content owning/producing the TOPS at SPAR Bierfest, Discovery Tough Mudder and TOPS at SPAR Wine Show.
Since acquiring the TOPS at SPAR Wine Show (www.wineshow.co.za) in 2014 the event has quickly grown to become the largest consumer “try and buy” wine event in South Africa touring to 7 cities connecting over 200 wine producers to 30,000 wine enthusiasts each year.
In 2020 Southern Skies diversified into wine consumer research (Great BIG Wine Survey) and wine education (delivering online wine courses to 7,000 pax).
Southern Skies is now 100% focused on delivering high-impact sales, marketing and business intelligence solutions to the SA wine industry focusing on 5 key pillars including E-commerce, Content, Research, Loyalty/Rewards and Export.
Southern Skies recently acquired industry stalwart, SA wine marketing/media and “wine online” pioneer wine.co.za.
