Dauphin County winery sold for $2.8 million: ‘Business can only get better’

A buyer has stepped forward to buy Spring Gate Vineyard & Winery in Lower Paxton Township, according to court records.

Earlier this month, a federal bankruptcy judge approved the sale of the 60-acre facility on Devonshire Road, including inventory and liquor licenses, to Nitin Patel. The sale is contingent on Pennsylvania Liquor Control Board approvals.

Patel is paying $2.8 million plus an additional $300,000 for inventory, according to court documents.

Spring Gate opened in 2014 and produces wine, beer and distilled spirits. It remains open for business.

In May, owner Marty Schoffstall listed the property for sale for $4.9 million after his company, Schoffstall Farms, LLC, filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court Middle District of Pennsylvania.

At the time, Schoffstall said a combination of rapid growth and the COVID-19 pandemic impacted business.

Attorney Robert E. Chernicoff, who is representing Spring Gate, said ownership will change once the liquor license transfers are approved.

“It is my understanding that the buyer intends to continue operations and actually expand them,” he said. “Everyone agrees that operations will continue as it is and that the business can only get better.”

Four liquor license transfers associated with Spring Gate are listed on the PLCB database under Patel’s company, Royal Winery, LLC of Newtown. They include a brewery, limited winery, brewery pub and limited distillery.

Other Spring Gate properties, including Chef Tony’s Bistro in Lower Paxton Township and Spring Gate Winery and Beer Garden at Arcona Crossing in Lower Allen Township, have since closed.