By Chris Rauber, San Francisco Business Times, Nov. 5, 2008

Calistoga’s famed Chateau Montelena Winery said Wednesday it has ended a sale agreement with French businessman Michel Reybier because the potential buyer was unable to meet terms of the deal. Officials at the 127-year-old winery said plans to sell the property to Reybier Investments fell through because it “has been unable to meet its obligations” under the contract it signed with the Barrett family, which owns Chateau Montelena, one of Napa Valley’s best known wineries. Further details were not forthcoming.

The family has decided to retain ownership of the upper Napa Valley property and will not offer the winery for sale, officials said Nov. 5. The Reybier deal had been expected to close last month. “The process that just ended did not result in the outcome we or Mr. Reybier desired,” Jim Barrett, the winery’s managing general partner, said in the statement. “However, we find ourselves energized by the enthusiasm and vision expressed by all the parties who bid for ownership of Chateau Montelena. We now embark on a pursuit with which we are familiar and uniquely capable -- to realize the full potential of this unique and special property.”