Gundlach Bundschu Files for Chapter 11 as California Wine Crisis Deepens
Gundlach Bundschu, California’s oldest family-owned winery, has filed for Chapter 11 bankruptcy protection after failing to restructure approximately $37 million in debt. The 168-year-old Sonoma County institution, which survived Prohibition and major wildfires, is seeking a new investor while the family retains a minority stake. The filing highlights a broader industry crisis driven by declining consumer demand, trade disputes, and over-leveraged expansions made just before the pandemic. While the winery remains open to visitors, it has cut its workforce by nearly half and is closing its secondary Abbot’s Passage facility. Industry experts note that while sales volumes continue to drop, the sector may be nearing a bottom, though the market is expected to become permanently smaller and more consolidated.