Gundlach Bundschu, California's oldest family-owned winery, has filed for Chapter 11 bankruptcy protection. The Sonoma County winery, founded in 1858, announced the filing this week after failing to reach a debt restructuring deal with its lenders.
The filing marks another sign of trouble in California's wine industry, which has struggled with falling demand, trade disputes and natural disasters in recent years. For readers who follow the region's wine business, the news signals that even long-established, historically resilient producers are not immune to the current downturn.
The winery's financial trouble traces back to a 2020 expansion. In February of that year, Gundlach Bundschu acquired a 60-acre estate as its business expanded and needed more space. A month later, the COVID-19 pandemic began, and the wine industry in California has not recovered since, according to the winery.
As a result of the bankruptcy filing, Gundlach Bundschu will change ownership for the first time in six generations. Jeff Bundschu, a member of the founding family and the winery's president, told the Los Angeles Times that the family is searching for a new owner but intends to remain part of the operation. He said the people who run the winery will keep building the brand regardless of who owns it.
"When you become the kind of institution that Gundlach Bundschu has become in our community, it's as much about all the people that are involved, and everybody who works there sort of has a spirit of caretaking," Bundschu said. "It's almost more important than who owns it."
The winery has endured hardship before. Over its 167-year history, Gundlach Bundschu survived a major pest outbreak, the 1906 San Francisco earthquake and fire that destroyed one million gallons of its wine, and Prohibition. In 2017, wildfires burned down the Bundschu family home, though the winery itself was saved.
Gundlach Bundschu's bankruptcy adds to a string of difficulties reported across the industry this year. Gallo said earlier this year it plans to lay off more than 90 employees by the end of January 2027 and close a major Napa Valley winemaking facility. In February, Constellation Brands, the publicly traded company behind Robert Mondavi wines and Modelo and Corona beers, announced plans to lay off 212 workers at its Mission Bell Winery in Madera. Constellation has set a goal of $200 million in cost savings by 2028 as it shifts focus away from wine toward its beer business.
That same month, Santa Rosa-based Foley Family Wines & Spirits wound down operations at its Chalone Vineyard in Monterey and laid off the facility's entire winemaking staff. Some producers have also been hurt by Canadian boycotts of American alcohol, imposed in retaliation for U.S. tariffs on Canadian goods. McManis Family Vineyards, founded in 1990, is selling 3,500 acres across Sacramento and San Joaquin counties for $22.5 million after Canadian exports fell from 40% of its export sales to just 5%.
Wildfires have compounded the industry's troubles. Signorello Estate, a Napa Valley winery that had rebuilt after its tasting room burned in the Atlas fire, filed for Chapter 11 bankruptcy protection last month. Rosenthal - The Malibu Estate, a 40-year-old winery, announced it will begin closing this week after its tasting room was destroyed in the 2025 Palisades fire, according to the Hollywood Reporter.
Steve Gross, president of the industry group Wine Institute, said the moment is difficult for many producers. "This is a challenging time for California wine, and some wineries are having to make incredibly difficult decisions," Gross said. "What makes those decisions especially hard is that for so many, this isn't just a business. These are family legacies built over generations."
Gundlach Bundschu said it will remain open to visitors while it works through its debt and ownership issues. "I need to reiterate 1,000 times, we're wide open," Bundschu said. "Any visitors to the place won't know a difference."
Looking ahead, Bundschu said the winery plans to focus its future operations on its central Rhinefarm estate. He said the business may expand beyond wine in the coming years, potentially integrating music as part of its offerings.
A staff reporter for this site is continuing to follow developments in California's wine industry as the story unfolds, working to confirm details as they emerge so readers get accurate information while it still matters.
