My Wines Direct On Fast Track To Liquidation

My Wines Direct  is on a fast track to liquidation using a legal maneuver which bypassed state courts and federal bankruptcy proceedings.

According to documents mailed to creditors of the now-defunct My Wines Direct, the company will use a technique called an Assignment for Benefit of Creditors (ABC) to dispose of the company’s assets. The technique, as explained by the Cooley law firm website (which handled the New Vine Logistics liquidation), is faster and less expensive than a federal bankruptcy or state court receivership and eliminates their usual disclosure requirements.

According to the papers, on January 6 — three days after My Wines Direct announced its closing  — the company transferred all its assets to a brand-new limited liability company set up (Jan. 5) specifically for the ABC maneuver.

This just two weeks after Wine Industry Insight reported its dire financial straits.

The new limited liability company — MWD (ASSIGNMENT FOR THE BENEFIT OF CREDITORS), LLC — is managed by Michael A. Maidy, co-managing partner of Sherwood Partners — the same liquidation auction firm used in the New Vine Logistics meltdown. Inertia Beverage Group was the only bidder for NVL’s assets in that auction.

Creditors of My Wines Direct must file a proof of claim with Maidy by July 3.

Subscribers of Wine Executive News premium content can access the full set of Assignment for Benefit of Creditors documents mailed to creditors of My Wines Direct.