New Vine Logistics, the Napa based provider of wine-shipping services for major winemakers, has suspended operations. Last Wednesday two venture capital firms decided not to reinvest in New Vine. By Friday Silicon Valley Bank stepped in and effectively shut the company down by halting receiving and the processing new orders. New Vine has handled shipping and fulfillment for direct orders by consumers for about 200 wineries and other wine merchants, including brands such as Beringer. Over 130,000 cases of wine were locked in New Vine’s warehouse as a skeleton crew wound down operations and now wineries are scrambling to reclaim their goods.
The company was one of the largest logistics firms that entered the field, seeking to capitalize on a raft of new state laws permitting consumers to order wines directly from winemakers. New Vine had been partnered by Amazon.com Inc. to handle shipments for a planned wine-shipping venture.
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It is frustrating to hear of another business that is closing due to this economy. We pray for the families that will be impacted.