AUGUSTA — The company that bought up much of Missouri's wine country at breakneck speed is now selling off properties almost as fast, leaving some officials worried about the company and the community it sought to transform.
The list of businesses put up for sale in recent months by the Florida-based Hofmann Family of Companies in Augusta and nearby towns is long: a bicycle rental business and a hostel along the Katy Trail in Augusta; three businesses, including two restaurants in nearby Defiance; and a deli in Warren County that caters to Katy Trail travelers.
"I think a lot of people respect what the Hoffmanns were wanting to do here," said Joe Buchheit, chair of the Augusta Town Board. "There is no doubt that they brought attention to Augusta. And personally, I hate to see them leave or sell anything."
The recent sell-off comes after the company bought, then closed — at least for now — Schulte's Bakery, a beloved Washington staple. It also recently listed for sale its land near the Washington airport. It did the same with the historic Emmaus Homes campus, which the company had envisioned turning into a boutique hotel and lodging for employees.
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The Hoffmann Family of Companies, until recently led by Washington natives David and Jerri Hoffmann, announced almost three years ago plans to rejuvenate the rural community of Augusta with an initial investment of $100 million. The goal was to turn the town and surrounding hills into a wine country that rivaled California's Napa Valley. The investment later grew to $150 million as the company purchased additional businesses in Augusta, Washington and ºüÀêÊÓƵ.
The plans have hit several snags since then, resulting in a scaled-down vision for development. But in an interview Wednesday, David Hoffmann said the family's commitment to Augusta remains strong, and the recent changes should not be interpreted as the company bailing on Missouri's wine country.
"I don't think anyone should think that we are leaving, because we are not," he said. "The leaders of our company are pretty passionate about Augusta, and our commitment to the region has not changed."
But David Hoffmann is no longer the company's chief executive. He retired last year and appointed his two sons, Geoff and Greg, as co-CEOs. And some local officials worry that the Hoffmann sons' commitment to Missouri wine country is not the same.
"David is from here, but Geoff and Greg are not," said Doug Hagedorn, the mayor of nearby Washington. "A lot of people are starting to think that they may not have the same kind of feelings, the same kind of attachment, to Augusta and Washington as David and Jerri do."
The company did not make Greg and Geoff available for interviews for this story.Â
As the sell-offs have unfolded, Hagedorn said, city officials' communications with the company have become "very limited."
"They have every right to do what they are doing, but I just wish they would come to the city and be upfront about what their plans are," Hagedorn said. "We just don't know what they are doing or what's going to happen next."
David Hoffmann said he still keeps tabs on the company even though he's retired, and he noted that his sons are attempting to refocus the company and are selling off just a small portion of the properties they own in the region.Â
Hoffmann has said in recent years that he hopes to have the company's wine distributed on three continents by 2030.Â
And last week, he said cutbacks in parts of the business are being made so it can "refocus on making wine and distributing it around the world."
"It was probably my error in judgment to have us focused on all these little businesses instead of focusing on what we needed to do to make Augusta the kind of international destination place that we intended it to be," Hoffmann said. "Geoff and Greg realized that and are making the changes necessary in order to do that."
'That was the bellwether'
Augusta, measuring 0.88 square miles and home to about 270 residents, is filled with companies that carry Hoffmann branding.
Some — like the Augusta Emporium and Hoffmann Gas and Gator, the city's only working gas pump — are open. Others, like the Hoffmann Bistro and Hoffmann Florist, feature months-old "coming soon" signs, with no indication that an opening is on the horizon.
"We kind of expected it, because some of those businesses didn't really seem to fit into what they were wanting to build here," said Eric Blumenberg, vineyard manager at Blumenhof Winery.
Blumenberg's family owns the winery in nearby Dutzow — one of three in the region not owned by the Hoffmanns — and he hoped the winery would see a bump as part of the Hoffmanns' investment in Augusta. But he hasn't seen that yet.
The Hoffmanns, billionaire investors with a vision for remaking Missouri wine country, began buying up properties in Warren and St. Charles counties in 2021. At one point, they owned more than 1,500 acres in Augusta, operated more than two dozen businesses in the region, and employed more than 500 people.
But several key pieces of that vision stalled or were scrapped over the past year.
Plans were delayed on two luxury hotels, one of which was eventually put up for sale. David Hoffmann said last week that the one up for sale — the Emmaus Homes campus, which he envisioned turning into a hotel called Chateau Hoffmann — was not suited for a modern water system. So renovation was "not a very viable option," he said.
Plans for a 12-hole golf course were revised because of complications with the rugged terrain on the site. The company scrapped plans for helicopter rides through wine country, and then put that land up for sale.
The real estate agent for the helicopter tour land — 10 acres that include an airplane hangar next to the Washington Regional Airport — said the decision was made because the Hoffmanns learned they couldn't offer tours that close to the airport.
"David Hoffmann is a good businessman. He knows that sometimes you make investments and they don't work out," said real estate agent John Fischer.
In downtown Augusta, the Hoffmann Hostel was one of the first businesses the family bought, but it's now up for sale with a price tag of $500,000. The building is gutted on the inside and has undergone extensive exterior remodeling.
Augusta zoning officials said the Hoffmanns never obtained the necessary permits to operate the 12-room hotel — nor for a men's clothing company a few blocks away called Augusta Clothing Company Too, which never opened.Â
And in August, the company backed off plans to purchase the Phoenix Shopping Center in Washington, a decision David Hoffmann attributed to rising interest rates that are taking a toll on private equity.
That shopping center was going to be the new location for the beloved Schulte's Bakery, David Hoffmann said. The company bought Schulte's in June 2022 and renovated it in January — then closed it last month as the Hoffmanns vowed to look for a new location.
"That was the bellwether," said Hagedorn, the Washington mayor. "That was a business that hundreds, if not thousands, of Washington residents loved. And when they closed it, it shocked us all."
David Hoffmann said the plan to reopen the bakery fell apart when the company opted not to go through with purchasing the Phoenix Shopping Center.Â
He said it's still possible the bakery will reopen, as the company plans to "readdress the purchase of the Phoenix Center in the next couple of years as interest rates stabilize."
'We're not worried'
Despite the scaling-back of several plans, there are still plenty of supporters in and around Augusta.
Buchheit, the chair of the Augusta Town Board, is one.
"The Hoffmanns came in, they moved fast, and they really did phenomenal work on old buildings and I think they have been very good for Augusta," he said. "Everything they've touched has been made better."
Kelly Dolan, owner of the H.S. Clay Bed & Breakfast and the Applegate Inn in Augusta, said she welcomes the family's plans to build a luxury 105-room hotel in the town. Her business has seen a bump from the Hoffmann-owned companies that have opened there already.
"I definitely have seen more people walking downtown on a Tuesday and Wednesday than I have before, and I know that's because of the Hoffmanns," Dolan said.
Dolan is hopeful that other entrepreneurs will come in and buy up the Hoffmann buildings that have been put up for sale.
And David Hoffmann is too. He still believes they're viable business ideas, even if they no longer fit what the company is trying to do.
"We are hopeful that people with passion will emerge to buy these businesses and make a go of it," he said. "We want these businesses to succeed because we think these kinds of businesses will ultimately enhance everything that we are trying to build in Augusta."
Dolan credits the family with making much-needed improvements to the Augusta buildings they bought, many of which were dilapidated before the purchase.
She's optimistic about business prospects for the region.
So, too, is Hagedorn, the Washington mayor — regardless of what's next for the Hoffmanns' vision.
"Washington's economy is great, so we're not worried," Hagedorn said. "We've always viewed what David and Jerri Hoffmann were doing as the extra icing on the cake. We don't need the extra icing — we've got plenty already."