California's Oldest Family Winery Files for Bankruptcy

Gundlach Bundschu Winery, the oldest continuously family-owned winery in California, has filed for Chapter 11 bankruptcy protection. The Sonoma Valley estate, founded in 1858, cited debts exceeding $37 million.

The sixth-generation Bundschu family stated that the winery and tasting room will remain operational during the financial restructuring of the 320-acre property, potentially with a new, unidentified investor.

"This Chapter 11 filing is unprecedented for our family and our company," wrote CEO Jeff Bundschu in a court declaration. "We enter this process with great humility and remorse for the burden the company’s financial distress places on our employees, vendors, lenders, customers, and community."

The winery's parent company, Bundschu Company, holds approximately $35.5 million in secured debt, with major creditors including Tiverton Advisors and American AgCredit.

The filing occurs amid a broader downturn in the U.S. wine industry. Wine sales fell below 300 million cases in 2025, a two-decade low, with annual revenue declining by $1.2 billion to $74.3 billion.