Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report:

September 16, 2024

Gaucho Group Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware

001-40075

52-2158952

State of

Incorporation

Commission

File Number

IRS Employer

Identification No.

112 NE 41st Street, Suite 106

Miami, FL 33137

Address of principal executive offices

212-739-7700

Telephone number, including Area code

Former name or former address if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

	☐	Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

	☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

	☐	Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

	☐	Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		VINO		The Nasdaq Stock Market LLC

Item 8.01 Other Events

On September 16, 2024, the Company sent out a press release announcing a comprehensive corporate restructuring and cost reduction strategy. The full text of the press release is furnished hereto as Exhibit 99.1 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1		Press release dated September 16, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 16th day of September 2024.

	Gaucho Group Holdings, Inc.

	By:	/s/ Scott L. Mathis
		Scott L. Mathis, President & CEO

Exhibit 99.1

GAUCHO HOLDINGS OPTIMIZES COSTS AMIDST ARGENTINE ECONOMIC OVERHAUL

Projected $1.6 Million in Savings as Company Leverages Argentine Economic Reforms

MIAMI, FL / September 16, 2024 / Gaucho Group Holdings, Inc. (NASDAQ:VINO), a company that includes a growing collection of e-commerce platforms with a concentration on fine wines, luxury real estate, and leather goods and accessories (the “Company” or “Gaucho Holdings”), today announced a comprehensive corporate restructuring and cost reduction strategy. These efforts are anticipated to yield significant financial benefits, with projected savings of $1.6 million over the next 12 months.

As economic revival gains momentum in Argentina, Gaucho Holdings has strategically adapted, recalibrating its focus and resources to harness this new wave of opportunity. Over the past year, the Company has realigned many operational roles and functions from the United States to Argentina, benefiting from the more favorable cost of labor and a skilled workforce. This shift has not only improved operational efficiency but has also opened up new export potential due to the devaluation of the peso, significantly bolstering the Company’s e-commerce activities and reinforcing its commitment to real estate ventures. The reintroduction of mortgages into the marketplace promises a vibrant future for Gaucho Holdings’ luxury real estate holdings, by enhancing value and attracting more investor interest. Additionally, the Company has implemented further cost-saving measures, such as reducing rental space, negotiating better terms with vendors, and streamlining operations. These changes, which follow initial severance disbursements, are poised to take full effect in Q4, setting the stage for enhanced financial performance.

Gaucho Holdings is strategically aligned with the recent economic reforms initiated by Argentina under the leadership of President Javier Milei. These reforms, promoting fiscal stability and encouraging free trade, mark a significant shift towards aligning with Western economic policies. This includes strengthening military cooperation with the United States and reintroducing mortgage markets, steps that are likely to bolster the business environment and enhance investor confidence in Argentina.

The reintroduction of mortgage markets in Argentina marks a pivotal milestone that Gaucho Holdings believes will significantly enhance real estate values, including the Company’s own luxury properties. This development, coupled with Gaucho Holdings’ ongoing investments in property infrastructure and development, positions the Company to benefit from what is rapidly becoming a hotspot for global investors. In light of this, the vocal support from international figures like Elon Musk for President Javier Milei’s economic policies further validates the Company’s optimism and strategic positioning for capitalizing on one of the globally best-performing markets in the coming years.

“By reducing our headcount in the USA and leveraging the labor market in Argentina, we’ve achieved significant savings and enhanced productivity,” stated Scott Mathis, CEO and Founder of Gaucho Group Holdings. “As we consolidate our operations and capitalize on the economic advances in Argentina, we are setting the stage for a strong and stable future. This transition not only optimizes our cost structure but also aligns us with a burgeoning Argentine market filled with opportunities. Our increased confidence in our strategic commitment to Argentina, and the potential for value creation there, is stronger than ever. We are enthusiastic about expanding our presence in Argentina, a move we believe will strengthen our company’s position in 2025 and beyond.”

About Gaucho Group Holdings, Inc.

For more than ten years, Gaucho Group Holdings, Inc.’s (gauchoholdings.com) mission has been to source and develop opportunities in Argentina’s undervalued luxury real estate and consumer marketplace. Our company has positioned itself to take advantage of the continued and fast growth of global e-commerce across multiple market sectors, with the goal of becoming a leader in diversified luxury goods and experiences in sought after lifestyle industries and retail landscapes. With a concentration on fine wines (algodonfinewines.com & algodonwines.com.ar), hospitality (algodonhotels.com), and luxury real estate (algodonwineestates.com) associated with our proprietary Algodon brand, as well as the leather goods, ready-to-wear and accessories of the fashion brand Gaucho – Buenos Aires™ (gaucho.com), these are the luxury brands in which Argentina finds its contemporary expression.

Cautionary Note Regarding Forward-Looking Statements

The information discussed in this press release includes “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included herein concerning, among other things, changes to exchange rates and their impact on the Company, planned capital expenditures, future cash flows and borrowings, pursuit of potential acquisition opportunities, our financial position, business strategy and other plans and objectives for future operations, are forward looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and are not (and should not be considered to be) guarantees of future performance. Refer to our risk factors set forth in our reports filed on Edgar. The Company disclaims any obligation to update any forward-looking statement made here.

Media Relations:

Gaucho Group Holdings, Inc.

Rick Stear

Director of Marketing

212.739.7669
rstear@gauchoholdings.com

Cover	Sep. 16, 2024
Entity Addresses [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Sep. 16, 2024
Entity File Number	001-40075
Entity Registrant Name	Gaucho Group Holdings, Inc.
Entity Central Index Key	0001559998
Entity Tax Identification Number	52-2158952
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	112 NE 41st Street
Entity Address, Address Line Two	Suite 106
Entity Address, City or Town	Miami
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33137
Local Phone Number	739-7700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	VINO
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Former Address [Member]
Entity Addresses [Line Items]
Entity Address, Address Line One	FL 33137
City Area Code	212