California’s oldest family-run winery has filed for bankruptcy protection, another sign of the struggles in the wine industry.
The family behind Gundlach Bundschu, founded in Sonoma County in 1858, said it couldn’t reach an agreement with lenders to restructure its debt, so it filed for Chapter 11 bankruptcy protection to buy breathing room as it tries to rebuild.
The winery’s debt hangover followed its purchase of another estate during better times. In February 2020, it acquired a 60-acre estate as its business grew rapidly and it needed more space.
A month later, the COVID-19 pandemic hit. The wine industry in California hasn’t recovered since.
The winery will change ownership for the first time after six generations.
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