Sherry-Lehmann, the most influential wine store in the nation, seems to have ceased operating.

For many years, the New York shop was the most glamorous and respected wine store in the country. Located on prestigious Park Avenue, it courted the wealthy of not just New York, but the world. Started in 1934 by former bootlegger Jack Aaron and, later, his brother Sam Aaron, it was just another liquor store at first. Then Frank Schoonmaker arrived.

Schoonmaker was an importer of fine wines who convinced Sam to grow his wine business. After several trips to Europe with a new friend, James Beard, Sam was convinced of the future of wine and soon the empire grew. Eventually, Sam passed the store to his son Michael Aaron, who most recently sold it to Shyda Gilmer and Kris Green.

Now, it seems to be crashing down. Wine buyers tend to be a trusting and optimistic lot. Who else would hand over thousands of dollars for wine they won’t see for several years? This process is called buying wine futures, or en primeur, and it’s the main way to gain access to France’s finest wines.

Chateau owners learned long ago that it would benefit their bottom line if they received cash soon after the wine was made rather than when it was shipped. They firmly believed that the wine should rest in barrels for two or three years before shipping, especially before sending it across the ocean.

This process was accomplished through négociants employed by chateaux who would form futures contracts with established retailers in America—retailers like Sherry-Lehmann. Although the wine still had to be handled by an importer or distributor in most states, for the most part, the system has worked well. (Local retailer Michael’s Wine Cellar is currently offering wine futures.) Occasionally, of course, ships sank or dock strikes left wines out for weeks and ruined it, but those events were unusual. Chateaux usually made good on such incidents to preserve the integrity of the system.

Now, numerous New Yorkers and other customers are suing Sherry-Lehmann for allegedly failing to deliver on their futures contracts. Wine Spectator and New York papers are all over this—covering instances in which wines allegedly stored in a nearby warehouse were ordered but never delivered. It didn’t help matters when employees stated that the owners would simply take expensive wines off the shelf and head out to dinner at fancy restaurants.

While the lawsuits continue, the store has racked up millions of dollars in unpaid sales taxes, distributors are refusing to sell to them due to unpaid bills, credit card companies have shut them off and, most recently, they have received notice of eviction. To put the final nail in the coffin, the Justice Department has just begun a federal inquiry. While the store's website remains up, a phone call resulted in hold music and advertising.

Bob McGinn has spent his entire career in the wine industry—forming wine clubs, working in wine sales marketing and engaging in all facets of the winemaking process, including vine management, fermentation and yeast analysis. He has developed wine programs for companies such as Marriott, Sheraton and Smith & Wollensky, and consults with local restaurants. You can read more of McGinn’s work at gulfcoastwinejournal.com.