Palandri, the large wine Margaret River development that epitomised the tax-driven wave of investment schemes in the late 1990s that was partially responsible for the recently resolved glut of Australian wine, has entered into voluntary administration. The vision of Darrel Jarvis, its chief executive officer and executive chairman, it was established in 1998 with four other Perth-based businessmen. Ten years later, owing millions of dollars and having failed to deliver on its listing plans, it has since attracted many hundreds of investors in Australia and the UK. Its many stakeholders include secured creditors, employees, trade suppliers, managed investment scheme investors, international distribution agents, customers and shareholders. At time of writing, Palandri’s administrator, Gary Doran of Deloitte, had secured the necessary funding to complete the 2008 vintage. Deloitte has been appointed voluntary administrator of all companies within the Palandri wine group, which include a complex web of Palandri Ltd, Palandri Wine Production Limited, Palandri Wines Limited, Margaret River Wine Investments Limited and Palandri Management Limited. According to various media reports, Palandri Finance borrowed $20 million from capital markets and then invested that by making loans to investors, like a bank. Gary Doran has distanced these loans from the running of the wine business. Since 2006, Palandri has claimed it was seeking a listing on the Australian Stock Exchange, replacing its presence on London’s Alternative Investment Market, a move it has failed to make.
