After 168 years of operation and service, Sonoma Valley’s Gundlach Bundschu Winery has filed for bankruptcy.
Sixth-generation owners Jeff and Katie Bundschu took to Instagram to reassure both customers and the Sonoma Valley community, saying, “Our doors are OPEN, the wine is pouring, and we’re deeply grateful for this community as we work through our financial restructuring.”
Having already survived Prohibition, fires, recessions, and earthquakes, the family-operated vineyard is no stranger to hardship. However, People reports that since COVID-19 began, they have struggled to regain traction after a decrease in demand for wine and limited foot traffic. After reducing expenses by 40% in the last three years and attempting to negotiate with lenders, the Bundschu family decided to file for Chapter 11 bankruptcy, allowing them to remain open as they restructure their finances.
Credit: Courtesy Gundlach Bundschu WineryThe winery stated they hoped the process will “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.” Throughout their restructuring, the winery upholds that Sonoma residents, who have supported them for over a century, will remain a crucial part of their family structure: “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”.
The historic business, which once saw over 65,000 annual visitors, has claimed it will have funds available for creditors as well, with People reporting that “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.”
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