Château Loudenne in distress sale

Château Loudenne, one of the oldest Cru Bourgeois estates in the Médoc, announced this week that it has been placed in insolvency proceedings, following a decision by the Bordeaux Commercial Court on Wednesday 24th November. It is now looking for a buyer.

The iconic Médoc property, known for its distinctive pink blush building and its turrets overlooking the Garonne river, was bought by Chinese spirits group Kweichow Moutai in 2013, as part of an international expansion policy which was promoted at the time by China’s state-owned enterprises. A few years later, it was at the centre of a controversy over reported non-payments to suppliers, but all seemed resolved when the Camus Cognac company, a long-standing distributor of the Moutai brand in the Duty-Free markets, became a minority shareholder in 2016.

This was not the first spirits company to own the 62ha Château Loudenne, as it had been in the hands of the Gilbey family, known for Gilbey Gin, for 125 years from 1875 through to 2000 (the later years as part of Diageo). It was a connection that meant Loudenne became a particularly well-known brand within the UK wine trade, and was the site of legendary parties (one of which, I am told, involved chef Albert Roux flying over one August with fresh grouse in his suitcase for a Glorious 12th dinner).

The Camus-Kweichow partnership saw, over the past few years, a replanting and restructing plan to increase the Cabernet Sauvignon in the vineyard, and a renewed focus on the white wine, which dates back to 1880 and is the oldest continually-produced white wine in the Médoc. It is also in full organic conversion as of 2019.

The announcement of the sale made a direct link to the recent tightening up of laws within China over movement of capital overseas, a subject that has been under increasing scrutiny since the introduction of the Foreign Investment Law (FIL) of the People’s Republic of China (PRC). The new laws became effective on 1 January 2020.

A press release from Loudenne this week said, ‘Despite their shared passion and the best efforts made by its two shareholders, constraints regarding foreign transactions for Chinese state-owned enterprises have made it impossible to implement the investment plan which is necessary to continue redeveloping Château Loudenne, therefore making it impossible for the château to continue its activities in its current form. The starting of insolvency proceedings enables all cross-border complexities to be removed, thereby facilitating a rapid transition, in the interests of Loudenne, its employees, its partners and its customers.’

Laws over companies in financial difficulties in France are extremely regulated. An administrator has been appointed to oversee any purchase of the château, and if a buyer is not found, the company will be placed into liquidation – a sad end for an estate that dates back to the 17th century, and remains the only property in the Médoc to have its own private port.

‘We are sorry that our long-standing partner is having to pull out of this great adventure which we were honoured to be invited to join’, said Cyril Camus, President of Camus Holdings. ‘We have close ties with Loudenne and are convinced that it has a future. If the new buyer wishes us to do so, we remain available to continue accompanying its development’.