Sycamore Takes Loss on Wine Estate Bet Amid ‘Sober Curious’ Turn

Sycamore Partners offloaded wine company Ste. Michelle Wine Estates in a deal that foisted losses on the private equity firm and the company’s lenders as the industry faces tariff pressures and slumping demand from younger consumers.

Sycamore’s sale of the business to the Wyckoff family failed to cover Ste. Michelle’s outstanding debt, resulting in losses for lenders, according to people familiar with the matter who asked not to be identified discussing private information.

Sycamore bought Ste. Michelle — which has wineries across the Pacific Northwest — from Altria Groupfor about $1.2 billion in 2021, touting its “tremendous potential ...