Online wine club Winc files for bankruptcy

The Los Angeles Winc has applied for Chapter 11 bankruptcy after being valued at $200 million US dollars in November 2021.

The business flourished during the Covid lockdowns, like many online businesses that delivered wine. Since the unwinding of Covid restrictions sales have not kept up with the Covid highs. Winc never made a profit and with its Q3 financial results, revealing that net revenues had declined 14.6% year-on-year to $15.8 million, it was no longer a growing company.

This compares to Naked Wines, another UK/US online wine company whose share price is £1.05 per share down from over £8 a share in June 2021. They are hoping to become profitable before they burn through their cash reserves, which have dropped from £57.1m to £23m in the last half year.