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Plus, everything to know to avoid this happening to you

How you store wine matters — especially when that wine costs more than the average home in the United States.

As any avid collector will tell you, the last thing you want is to entrust a facility to keep your prized wines fresh, only to have them ghost you in the middle of the night, which is precisely what happened to clients of the New York City-based Chelsea Wine Storage.

Chelsea Wine Storage is currently being investigated by the New York State Liquor Authority following accusations of mismanagement of clients’ wine collections. The accusations include theft and unauthorized sales of bottles, including a set of highly valued Burgundy wines worth approximately $300,000 according to a report by The Post. Chelsea Wine Storage, which had been situated in New York’s Meatpacking district for over two decades, relocated its facility to the basement of a former T.G.I Fridays in Times Square in the year 2022. Following this relocation and a subsequent change in leadership, the company experienced a year filled with customer grievances which has escalated in recent weeks due to clients being unable to access their wine collections.

Chelsea Wine Storage has traditionally offered open storage options, charging $10 a case per month for storage in a warehouse, and a more expensive closed locker storage service providing a self-service locker in the storage unit which was constantly accessible to the client. Currently, clients are unable to access their wine collections. In light of several weeks of unreturned calls and emails inquiring about their wine, clients have even attempted to gain access to the storage facility themselves according to The Post.

The owners, Amelia and Michael Gancarz, attribute the issue to staff shortage and problems with their landlord, Delshah Capital. They faced a lawsuit from the landlord in November due to failure in timely payment of rent for the storage facilities, wine store and basement lounge. Additionally, they were brought to court by the wine broker company, Grand Cru, following a case filed on November 14. This action was taken when the couple reportedly sold Burgundy bottles worth $350,000 to Grand Cru, but the latter never received the wine. Grand Cru sued the Gancarz’s and received $165,000 from them. The couple is making efforts to repay the remaining amount including the interest.

The Post reported that Chelsea Wine Storage assured its worried clients during the weekend that their wine was secure but provided limited details. One client was able to get his wine with assistance from his new storage company, Domaine Storage. Chelsea Wine Storage failed to respond to multiple comments sought by F&W.

The situation at Chelsea Wine Storage is a unique case. Still, it calls for introspection on the methods of wine storage. You can go ahead and read more if you are interested in learning about storage of valuable wines.

“Wine has become a legitimate alternative investment given the growth of its worldwide popularity over the past twenty years boasting an 8% compound rate of return, according to various estimates,” says Caleb Silver, editor-in-chief of Investopedia. “But, for individual collectors and investors, it’s important to note that only the most highly rated wines that have been properly stored with established provenance and pristine documentation meaningfully appreciate over time.”

When it comes to buying and selling wines at auction, quality control is vital. Wine bottles exposed to high temperatures can literally cook, damaging the flavors and ageability. Additionally, there’s rampant concern over potentially counterfeit branding thanks to wines with improper labeling, so be sure to do your homework before submitting a bid.

Your wine stored miles away might not always be top of mind. However, it’s key to at least check your investments, like you would your 401k, every now and then. For example, if you find out your wine storage company has new management or a new facility, check in on your collection to ensure the quality control remains the same, and get any changes in writing.

“If you rent storage space from a company and the company changed ownership, you probably want to make sure the storage conditions haven’t declined or become problematic,” warns F&W executive wine editor Ray Isle, who stores his wine just outside New York City.

Like many prized possessions, the safest place to store them is within sight. If you are a collector with extra special bottles, invest the money you’d spend in an off-site facility to equip your own home with bottle aging and storing space. Store wine in a temperature-controlled wine fridge (emphasis here on wine. Your traditional refrigerator is far too cold), purchase stone wine storage tiles that naturally keep your wine chilled, or get a sturdy wine rack for your basement or closet.

Finally, perhaps it’s a good idea to reframe your thinking of what it means to invest in wine. “For most collectors and enthusiasts,” Silver says, “the best returns they will earn will be from drinking and sharing it.”

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