The Sad Decline of Sherry-Lehmann

The store set the standard for New York wine retail; who’s to blame for its troubles?

- PETER HELLMAN

on a sunny afternoon last December, a woman stands at the counter at Sherry-Lehmann, frowning. She asks why she hasn’t received an overdue $200 refund. “It takes four to eight weeks for the credit to be processed,” the salesman says. He offers the woman the value of her refund in wine. But the pickings are slim: The shelves labeled red Burgundy, once lined with bottles from prestigious domaines, are vacant. Except for a bottom row of inexpensive wines, the same is true of the shelves labeled white Burgundy. And the Bordeaux selection, once vast, is gone.

The woman asking for her refund is persuaded to take several bottles of a well-known Napa Valley Cabernet Sauvignon. As she leaves the shop, an expensively dressed man strides up to the counter. “I need four bottles of Krug Champagne,” he says. “We’re totally sold out of Champagne,” the salesman says. A look of disbelief crosses the patron’s face. He turns on his heels and departs.

Once arguably the king of wine shops in America’s biggest market, Sherry-Lehmann is facing potential financial ruin. The company owes New York state more than $3 million in back taxes. Several leading wholesalers tell Wine Spectator that inventory at the store is low because the company owes money to multiple distributors, who now refuse to send the store any more wine. And at least three customers have filed lawsuits alleging Sherry-Lehmann failed to deliver wines they bought.

How did a store with such a sterling reputation sink so low? While the pandemic hurt restaurants, many wine shops thrived as people did their drinking at home. Did Sherry-Lehmann suffer from particular vulnerabilities? Or has it been woefully mismanaged?