Cockatoo Ridge Wines Ltd has entered into voluntary administration.

It speculates to the Stock Exchange that both the company and its subsidiaries- Australian Commercial Wines Pty Ltd, Cockatoo Ridge Sales Pty Ltd, Cockatoo Ridge Pty Ltd and Playford Wine Holdings Pty Ltd, are likely to become insolvent in the current quarter amidst given trading conditions.

The South Australian company produces sparking, white and red wines bearing the Cockatoo Ridge Label and other brands including Normans and Griffith Park.

In addition, the company also owns a cellar door business near Tanunda in the Barossa Valley and offices in Adelaide.

The board has appointed George Divitkos and Russell Henry Heywood-Smith of BDO Kendalls as joint administrators after speculating the third quarter trading scenario the company expects to endure.

Cockatoo Ridge recently tried without success to sell its winery at Monash in the South Australian Riverland in an effort to get itself out of the troubling waters, by paying off some of its debt.