California Winery Founded in 1858 Files for Chapter 11 Bankruptcy: ‘Please Come Here During This Process’
California Winery Founded in 1858 Files for Chapter 11 Bankruptcy: ‘Please Come Here During This Process’
Chiara KimThu, September 24, 2026 at 9:06 PM UTC
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Gundlach Bundschu Winery filed for Chapter 11 bankruptcy on Sept. 23Credit: George Rose/Getty -
Gundlach Bundschu Winery, California’s oldest family-owned winery, filed for Chapter 11 bankruptcy to restructure its finances
The winery cited pandemic-related economic pressures and a 2020 acquisition as key factors in its financial struggles
Amid the reorganization process, the winery remains open and plans to preserve its legacy with a potential new partnership
A historic California winery has filed for bankruptcy.
Gundlach Bundschu Winery, a Sonoma, Calif. family winery founded in 1858, filed for Chapter 11 bankruptcy on Wednesday, Sept. 23, according to a voluntary petition obtained by PEOPLE.
“The family says the effects of the post-pandemic economy and an unsustainable debt burden created financial pressures it could no longer address outside a court-supervised restructuring,” said a press release shared with PEOPLE.
Despite having over 65,000 annual visitors at its peak, the 168-year-old winery said in the release that financial troubles arose after it completed a debt-financed acquisition in 2020 and experienced decreased demand for wine during the pandemic.
The family said it used personal assets to support the business, reduced expenses by over 40% in the past three years, and attempted to negotiate with lenders, but the capital costs were too high.
In the summary of assets and liabilities in the petition, the company estimated it has over $39.1 million in total liabilities — over $35.4 million of those liabilities are said to be to creditors whose claims are secured by property.
The winery was founded in 1858Credit: George Rose/Getty
The petition also said that the company has an estimated $17.2 million in property assets.
In the petition, the company listed between 100 and 199 creditors, stating that it estimates that it has between $10,000,001 and $50 million each in assets and liabilities.
Gundlach Bundschu also checked a box stating that it estimates it will have funds available for creditors.
Per the release, the winery is entering the Chapter 11 process to “restructure its finances with the assistance of a possible new investor.”
Chapter 11 bankruptcy allows companies companies to reorganize their financials, while typically remaining in control of the business, per the U.S. Courts.
The winery says it hopes to use the process’ “time and structure” to “stabilize the business, continue operations, and work with a potential new family and community-oriented partnership.”
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“The company expects the process to result in a different ownership structure backed by sufficient capital to preserve the winery as an operating business and maintain its historic connection to Sonoma Valley,” the release said.
It added that it believes a partnership will infuse the winery with capital and hospitality expertise.
“This is about creating a fair, court-supervised process that gives this historic business an opportunity to survive, preserve jobs, protect relationships with customers and vendors, and ensure the winery remains a meaningful part of the Sonoma Valley community,” said Jeff Bundschu, a sixth-generation Bundschu owner who runs the company alongside sister Katie. “We are excited to partner with a family organization that recognizes the importance and value of our family operation to Sonoma Valley.”
According to the press release, the winery is the oldest continuously family-owned winery in California and plans to remain open during the reorganization process. Launched in the 19th century as a winery, the company began using a destination-winery model in the early 2000s with other features like live music to become “a community gathering place.”
“Please come here during this process,” Bundschu urged. “Come enjoy what you’ve always loved and help us celebrate the new life ahead for this historic legacy. We plan to be open throughout, continue the special events we have already scheduled, and our team will be here sharing the wines we crafted with love, attention, lots of smiles — and really good music.”
The company added that the winery has withstood challenges across its 168-year history, from “the destruction of one million gallons of wine and three family homes in the 1906 San Francisco earthquake” to Prohibition, recessions, fires and more.
“For six generations, our family believed that Gundlach Bundschu is more than a winery. It is a core part of Sonoma Valley,” said Bundschu in the release.
“We are fighting for the opportunity to help ensure that the seventh generation — and the Sonoma Valley community that has grown alongside us — has a future here,” he added. “This has never been only about a winery. It is about a place, a legacy and a community worth preserving.”
The winery also shared the news of the bankruptcy filing on its Instagram, reassuring customers that the winery remains open.
“Our doors are OPEN, the wine is pouring, and we’re deeply grateful for this community as we work through our financial restructuring,” the company wrote in its caption.
“It’s Sonoma’s turn to give back for all your family has given over the generations,” one fan commented.
Another added, “We have been wine club members since the 90s and will continu[e] to be. Incredibly tough environment and we look forward to doing our part to help.”
on People
Source: “AOL Money”
