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Brothers trying to save family's bankrupt winery
Sunday, January 06, 2002 By The Associated Press
NORTH EAST, Pa. -- Josh and Matthew Bostwick are trying to save a heritage.
The brothers have bought the assets of the family's third-generation winery in Erie County, days before a federal bankruptcy hearing that their father said was brought about by his divorce, several deaths and $200,000 in unpaid taxes.
Sparkling Wines, Burgundy, Catawaba, Concord, Cabernet Sauvignon, Vidal Blanc, Chardonnay, Seyval, Vignoles, Niagara, Delaware, Riesling, Chablis, Fruit Wines
But Josh and Matthew Bostwick don't want to see Heritage Wine Cellars disappear.
They've paid $20,000 for its assets and are awaiting a hearing tomorrow where higher offers will be considered and objections to the sale will be heard.
"We had to beg, borrow and steal from everybody just to make ends meet," said Josh Bostwick, 24. They pay $5,000 a month to the trustee for the lease of the winery property, of which $1,000 is sent to their father, who still owns the property.
The tangible assets they bought include 10,000 gallons of bulk vinegar, 400 cases of wine, 300 cases of bottles, 38,000 corks, 125,000 labels, hose and other items.
But their main concern is the right to the name, which is included in the sale.
When Heritage Wine Cellars was closed by their father's bankruptcy filing in July, Josh and Matthew Bostwick, 27, created their own corporation and obtained a license to operate the winery. It reopened in September under the corporate name Bostwick Enterprises Inc.
Josh Bostwick said it had been difficult. He said competitors had told customers that the winery was closed and had sent state inspectors to check whether they had a valid license to operate.
Robert Bostwick said the inventory was worth less than his sons paid. The bottled wine will have to be dumped because it can't be legally resold unless it's reprocessed, he said.
"What they're basically buying is a family tradition. It's worth more to the boys to keep the business going," he said.
"It's not going to close under my sons. Every generation needs to improve. I'm hoping Heritage will be a better and stronger company under my boys. I really believe that."
Matthew Bostwick, who left his job in the computer industry to run the winery, calls owning the winery a "once-in-a-lifetime kind of opportunity."
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Address: 12162 E. Main Rd., North East, PA 16428