18.1.17 Nueva Rumasa Fraud Case; High Court Upholds Ban on BIB

A High Court judge has concluded his investigations into alleged fraud by Nueva Rumasa concerning the issue of bonds and has accordingly indicted fifteen people including the six sons of the late founder José María Ruiz Mateos, Zoilo, Pablo, Álvaro, Francisco Javier, José María and Alfonso along with Ángel de Cabo. The latter, who posted the highest bail in Spanish history (50 million euros), specialised in buying up and re-floating bankrupt companies through his firm Back in Business, and bought Nueva Rumasa. They are all accused of fraud, concealment of assets and money laundering.

Ruiz Mateos and his six sons (foto:diariodejerez)

Nueva Rumasa (NR) raised almost 340 million by offering investors good returns in the form of bonds on minimum 50,000 euro investments in the more high profile NR companies. At least 4,110 people invested but the majority never saw their money again as it was spirited away in other countries to achieve maximum opacity. NR had various divisions: food, distribution, wines and spirits and a chain of 18 hotels. In Jerez it owned Grupo Garvey which included the Complejo Bodeguero Bellavista, Zoilo Ruiz Mateos, Valdivia and Teresa Rivero.

The Manzanilla rebels have suffered another reverse in their campaign to legalise Bag in Box. The High Court of Andalucía has rejected their written request to have the ban overturned on the grounds that they were not represented. The court, however says its ruling was against the Junta’s decision to allow them, not the Manzanilleros. Last October the court decreed a “cautionary suspension” of the sale of BIB pending a final decision on the matter. This strengthens the hand of Fedejerez which made a legal appeal against the Junta’s decision to allow BIB in horeca which was rejected by a large majority at three Consejo plenaries.

Bodegas: Zoilo Ruiz Mateos SL

The original business was established in 1857 in Rota. Zoilo Ruíz Mateos Rodicio inherited the firm which produced the local red wine, Tintilla de Rota, known then (to the anglophones) as “Tent.” He was married to María Dolores Camacho y Cacella.

One of these children is Zoilo (foto:Fundacion Alcalde Zoilo Ruiz Mateos)

Their son, Zoilo Ruíz Mateos Camacho born in Rota in 1900, reorganised the business and associated himself in 1930 with another small bodega, Benítez López, in Jerez. He bought a small (hexagonal!) bodega with a mere 300 butts in the Calle Chancillería from Perico Lassaletta in 1944 and was now happily dealing in Sherry as an almacenista.  He enjoyed a very happy marriage to Encarnación Jiménez de Tejada y del Pozo with whom he had various children. He was a much respected man and mayor of Rota, where a street is now named after him - and one in Jerez too.

A lovely portrait (foto:Jose Luis Jimenez)

In 1952 his three elder sons, Zoilo, Rafael and José María, joined him in the business and in 1958 José María formalised it into a company called Zoilo Ruíz Mateos SA. It was still a modest family business but José María had big ideas. In 1960 he somehow managed to persuade Harveys of Bristol to make him their principal wine supplier with a 99 year supply contract even though he didn’t have enough wine to supply the 96,000 butts Harveys needed. Over the next decade, therefore, he would buy up no fewer than 16 of the Sherry firms which were struggling and amalgamate them into the new Bodegas Internacionales (BISA). Really he was more of a businessman than a bodeguero, leaving  Zoilo to run the Sherry business while he embarked on his Rumasa empire in Madrid. Zoilo died in 1962 and José Maria's sons took over.

The sign reads "The firm started here" (foto:diariodejerez)

Sherry which ZRM could produce was augmented by that of BISA, keeping the remaining brands supplied until Rumasa was expropriated in 1983. The ageing bodega is in the Calle Pizarro next to Sandeman and close to the Real Escuela. Through ZRM Nueva Rumasa bought Sandeman’s bodegas and 400 ha of vineyards with a contract to make the wines for the latter’s owners, Sogrape of Portugal, most of which is made at Garvey.

Both the Garvey bodegas (Complejo Bellavista) and Bodegas Zoílo Ruíz Mateos, which share the winemaking facility at bellavista,  were in administration for five years before sale as a going concern, including the Sandeman supply contract and the old Sandeman Cerro Viejo vineyard, to the Phillipino brandy magnate Andrew Tan, who had also bought the remains of the old Domecq business from Beam Suntory.

Apart from the Sandeman range, the bodega makes three wines of its own: Zoilo Ruiz Mateos Reserva Privada Amontillado, Oloroso and PX, all VORS in fancy cut glass bottles.

In 1994 Williams & Humbert bought the BISA bodega and the Sherry brand Don Zoilo and Brandy Gran Duque de Alba from Marcos Eguizabal who had bought it from the Spanish State. In the end it might be said that this once very good bodega reflects the stories of both Rumasa and Nueva Rumasa.

18.10.15 Buyer found for Valdivia

A mercantile judge in Cádiz has accepted an offer for Bodegas Valdivia in Jerez from the Huelva bodega and cooperage company José y Miguel Martín SL based in Bollullos par del Condado. The business of seasoning rum and whisky butts is huge, estimated to total some 60,000 annually, and they are a leading firm in this trade. Glenfarclas is one of their customers. They had hoped to receive permission to use terms such as “Sherry cask” or “Oloroso cask” from the Patents Office but the Consejo Regulador put a stop to that as wine from Huelva is not Sherry.

Hotel Villa del Duque, Valdivia bodega in background (foto:diariodejerez)

The ex Nueva Rumasa complex sold as a (nearly) going concern, consists of three bodegas and the small Hotel Villa del Duque, and has been on the market for five years with just one employee to look after it. With the purchase Martín has acquired a registration with the Sherry Consejo. Naturally the new owners want to get started as soon as possible, and will take on a workforce, but not necessarily those who previously worked at the bodega. There is no mention so far of the price paid. An Israeli group made an offer of 3.3 million euros a year ago, but no more was heard from them. In any case the price paid will be a bargain, even though much of the stock and equipment has been sold off. It is thought that Nueva Rumasa originally paid 20 million euros.

22.9.15 Ruiz Mateos Will Embargoed, Paternity Suit

A High Court judge, José de la Mata, has placed an embargo on the inheritance from their father to six of his sons who are facing charges in the “Nueva Rumasa Case”. He has ordered the notary to send him a copy of the will as soon as it is opened. With this cautionary measure the judge is seeking to protect the interests of 4,110 investors in Nueva Rumasa whose shares are worthless. Not only have the six not yet paid €30 million bail, but the court is suspicious that those not already in jail are enjoying the use of property related to Nueva Rumasa companies in an attempt to hide its ownership.

Their inheritance will probably be worthless. Years ago the Nueva Rumasa founder gave his sons the companies belonging to it, and the only thing left is the €2 billion he had hoped to get from the government as compensation for the expropriation of Rumasa, but that is most improbable - he has been claiming it for 30 years already.

Adela and her mother, Jose Maria Ruiz Mateos (foto:elmundo)

Separately, the family of Ruiz Mateos has been legally prevented from cremating him until the result of a paternity suit is resolved. A girl called Adela María Montesdeoca, whose mother is Mexican and who lives in Chicago brought the case in the hope of recognition before Ruiz Mateos died. He had cut off all communication with them and they will presumably not inherit anything.

23.11.14 Offer Received for Bodegas Valdivia

An Israeli group, Keren More LTC of Tel Aviv has tabled an offer of 3.3 million for the bodega which includes the Villa del Duque hotel, and has promised to invest a further 4.7 million to re-start the business. This offer represents a mere 20% of the 16 million value put on the ex Nueva Rumasa business, but is the only serious offer received in the three and a half years since the business went into administration.

Entrance to bodegas with hotel on left (foto:diario jerez)

The administrators feel that poor though it is, this is the best option to conclude the sale of the company. The economic crisis has hit Spain badly and Jerez in particular, and the bodega business is not attractive to potential investors. Keren More will have to prove that they have absolutely no link to Nueva Rumasa, who had notoriously devious ways and means of hiding their presence in deals.

The proposal is to purchase the 19,000 m2 of bodegas (Valdivia, Pedro Valdivia and Sacromonte) as well as the hotel and all equipment. There are plans to buy more wine and brandy stock and barrels, to create a commercial department and develop new brands. New contracts of employment will be offered first to ex-employees, and about a dozen are expected in the first year.

News from Gonzalez Byass and Ruiz Mateos 27.10.12

Good news from Gonzalez Byass

According to the UK Marketing Director, Jeremy Rockett, GB have finished their financial year on an upward curve with really good growth in table wines and Tio Pepe. The firm is selling increasing amounts of table wine in the £12-13 sector and plans to increase its range.

Last May, Jeremy Rockett said that the London Sherry boom had spread beyond the Capital . Now it is building. More new Spanish restaurants are soon to open in London, but the Sherry boom is spreading to Wales as well.

GB will be releasing a new selection of the four Palmas wines first released last year (see tasting notes very soon). They were selected by the bodega in association with wine journalist Anthony Rose, and there is already much interest.

(Courtesy of Harpers)

Jose Maria Ruiz Mateos is in Hospital

The Nueva Rumasa founder was admitted to hospital in Madrid yesterday with an arythmic heart condition brought on by an attack of anxiety, according to his spokesman. He was earlier moved from a private clinic as he had not paid the medical insurance. The 81 year old was accompanied by his daughter Begona, and his six sons were criticised for not turning up. The anxiety was apparently brought on by his having to be kept in jail to guarantee his appearance in court in La Palma to answer charges of fraud. This has not been helped by the fact that Begona has denounced her brothers for all sorts of business malpractice.It seems he also has Parkinsons.

(Diario de Jerez)

News from Jerez 24.10.12

Garvey staff call meeting to find out what is going on

Garvey is two months in arrears with staff pay and has severe liquidity problems, so the unions have called meetings with the staff and management of the four Nueva Rumasa bodegas  (Garvey, Zoilo Ruiz Mateos Teresa Rivero and Valdivia) for Friday as they have had no news for months about what is going on with the receivership. Workers’ representatives will seek an early meeting with the judge of the mercantile court. 

Valdivia is awaiting a judicial decision before being put up for sale. Teresa Rivero – formerly CAYDSA – is in deadlock over the reduction of staff. The management of the bodega hopes to revert to the pre-Nueva Rumasa cooperative status as its sale was never properly finalised (paid for) by the Ruiz Mateos family. These are the two smaller bodegas, going through an abbreviated process. 

The bigger two, Garvey and ZRM have seen swingeing staff cuts – more than half at Garvey and over 20 at ZRM, and there has been little management since the judge removed management authority from Angel de Cabo, the actual owner of Nueva Rumasa. What with the liquidity situation, the bodegas have had problems securing raw materials, and have been steadily losing customers.

Bodegas: Valdivia

Valdivia was originally established by Rumasa in 1960, and passed through the hands of Williams & Humbert and then in 2003 to Intermonte, an investment and construction group from Murcia. They bought the grand house the Villa del Duque and neighbouring bodegas from Williams and Humbert which they proceeded to revamp, converting the Villa into a hotel, thus creating Jerez’ first wine tourism centre in a complex of 20,000 m2 located in the central Barrio Santiago.

The three bodegas called Valdivia, Pedro de Valdivia and Sacromonte were up dated to the highest level of equipment and the enologist Rafael Veas was installed. Vineyards extending to 250 hectares were bought - the Pago de la Plata in Jerez Superior.

In March 2008 the complex was bought by Nueva Rumasa for 20 million Euros through its Grupo Garvey subsidiary, which is now in administration. Nueva Rumasa was sold by the Ruiz Mateos family to Back in Business, a company specialising in revitalising companies with difficulties, and which received offers to buy Valdivia – including its debts – but refused. Angel de Cabo, owner of Back in business is currently in jail, and the bodega is not working, so heaven knows what will happen to it.

The bodega produces Brandies and Vino de la Tierra de Cadiz as well as the following Sherries:

The Valdivia Suite range, aged for 5-10 years:

Fino; Manzanilla “La Rubia”;PX; Medium; Cream; Pale Cream; Oloroso Seco; Amontillado Seco

The Sacromonte range aged over 15 years:

Amontillado; PX; Oloroso

Contact

Address: C/ Zoilo Ruiz Mateos Camacho s/n, 11408 Jerez de la Frontera, Cadiz

Tel: (+34) 956 314 358

Web: bodegasvaldivia.com

News from Jerez 27.7.12

The judicial net is tightening round  the Ruiz Mateos family.

Following preventive measures adopted by the Granada Mercantile Court to prohibit any attempt by the family to transfer the brands of Dhul (a desserts producer) to third companies via companies they own, the Trades Unions are seeking an injunction on the Garvey brands to avoid their possible transfer. "Without the brands there is nothing". The Ruiz Mateos family still owns the registered title of the Garvey brands, the exclusive rights of use of which are assigned to Complejo Bodeguero Bellavista (the Garvey bodega) until 2015. The bodega's administrators consider the potential loss of the brand names is an added risk to the running of the business, as do the firm's actual owners, Back in Business, in their viability plan.

It seems that the Ruiz Mateos family have tried to register the Dhul brand names to spurious third companies they also own under a spurious holding company in Belize so that they can be kept out of  insolvency or expropriation proceedings. The unions are worried the same could happen at Garvey after 2015.

"Amontillado" 17%, Jose de Soto

Appearance
Deep amber - ruddy brown, pronounced legs.
Nose
Full, rather commercial sweetened  blend, much more oloroso than amontillado, very savoury - hints Marmite and young PX, no evidence of or delicacy of once being under flor, in fact rather fat.
Palate
Full, quite sweet, quite nutty and mellow but totally unsubtle "British blend", savoury sweetened oloroso.
Comments
This used to be dry and had some elegance, but has been cheapened to make a commercial supermarket "medium" Sherry. Thank you, Nueva Rumasa.

Price

£6,95  Raeburn Fine Wines, Edinburgh

The Rumasa Saga: part 2

Jose Maria Ruiz Mateos was an entrepreneur to his fingertips, and he started up all over again in 1990 using funds he had managed to keep from the taxman. Nueva Rumasa, however, was a group of companies and not a holding company as had been Rumasa, and he issued millions of shares, promising returns of 8%.  He began buying up companies in a variety of sectors including construction, a football team, property, food companies, and of course bodegas.

He bought Garvey for a second time in 1997, Jose de Soto (which was now owned by Garvey), Valdivia, Zoilo Ruiz Mateos (again) and CAYDSA, an old firm in Sanlucar whose name was changed to Teresa Rivero after his wife, and non Sherry bodegas Cavas Hill in Penedes, Marques de Olivara in Toro and Campo Nuble in Ribera del Duero. In 2004 Ruiz Mateos was diagnosed with Parkinsons and gradually delegated management of the group to his six sons - though he was pulling strings in the background - but they proceeded to run it corruptly and irresponsibly. In 2005 Jose Maria was jailed for 3 years for concealment of assets.

By 2010 ten of the biggest of the group´s companies (out of around 100) were declared bankrupt with debts totalling 700 million euros owed to investors - many of whom would lose their life savings - and the tax man. Four of the group´s own executives raised a court action alleging fraud, so Jose Maria and his sons found themselves back in court.

In September 2011 a company called Back in Business owned by a valenciano Angel de Cabo and which specialises in buying up and restructuring ailing firms bought Nueva Rumasa for 1.5 billion euros in a "very complex process". The details of the deal were not released but a promise was made to meet all commitments to shareholders and the workforce. There may be interest from competitors in buying component companies which might offer hope to the approximately 9,000 workers, and indeed some of the food companies have already been sold.

It now seems that the courts are highly suspicious of Back in Business, and suspect that the "complex process" was an exercise in obfuscation of dodgy dealings. Certainly all six sons are in jail having been convicted of fraud, money laundering, concealment of assets and non payment of tax. Jose Maria died in September 2015

News from Jerez 5.6.12

The Nueva Rumasa saga trundles ever onward. Jose Maria Ruiz Mateos has now asked to be jailed until such time as all the investors have been paid. He says that Banco Popular and Banco Santander have direct responsibility for all that has happened to the group, but that ultimately he has full responsibility for any final decision. Juridical sources say that his imprisonment is most unlikely as neither they nor the investors have called for it.

News from Jerez 12.5.12

Four ex-executives of Nueva Rumasa have blown the whistle on the company, accusing it of massive levels of fraud and implicating its owners, the Ruiz Mateos family. Its debt to the tax man has grown to 290 million euros since 2006 and comprises unpaid corporation tax and VAT. The ex-executives are offering to appear as witnesses at the inevitable trial.

Nueva Rumasa, and particularly its owners are no strangers to scandal, especially of the false and imaginative accounting type. The company is in serious trouble, with some of its subsidiaries virtually bankrupt. It looks very much as if Nueva Rumasa will go the way its predecessor, Rumasa did in the 1980's. Watch out for some colourful events!