Croydon-based wine investment firm Bordeaux Fine Wines has been put into provisional liquidation after an investigation by the Insolvency Service.
BFW sold fine wines, mainly from the Bordeaux region of France but also from other areas, as an investment and was known to have cold-called potential investors.
The provisional liquidation order was made “in the public interest” by the High Court on 19 December. It followed a petition on behalf of business, innovation and skills secretary Vince Cable.
A statement from the Insolvency Service says: “The Official Receiver has been appointed provisional liquidator of BFW. The role of the provisional liquidator is to protect assets in the possession or under the control of the company pending the determination of the petition.
“The provisional liquidator also has the power to investigate the affairs of the company insofar as it is necessary to protect the assets, including any third-party or trust money or assets, in the possession or under the control of the company.”
The case is now subject to High Court action and no further information will be made available until the hearing of the petition, which is due to go before the High Court on 26 February 2014.
Hargreaves Lansdown investment analyst Richard Troue is sceptical that wine is a genuine investment.
He says: “I would say wine is for drinking.
“We are very cautious about recommending any investment where the manager is not investing in proper business that generates revenues and profits.”