Gundlach Bundschu, California's Oldest Family Winery, Files for Bankruptcy
Sonoma Valley's Gundlach Bundschu, one of California's oldest wineries, seeks restructuring amid financial challenges.
Bankruptcy Filing
Sonoma Valley's Gundlach Bundschu, established in the late 1850s and considered one of California's oldest family-owned wineries, has filed for Chapter 11 bankruptcy.
The decision comes after years of operational restructuring, cost reductions, and attempts to secure new investment or sell assets. The winery, officially registered as Vineburg LLC, is run by Jeff Bundschu and his sister, Katie Bundschu Tynan.
The company's financial troubles intensified in 2020, just before the pandemic, following a debt-financed acquisition that year.
Operational Changes
To balance its books, Gundlach Bundschu has reduced its workforce from 120 employees to 63 and ceased retail sales at Abbot’s Passage, a label it started in 2020. The Abbot’s Passage facility in Glen Ellen will close in early October.
The winery is hiring Finestone Hayes as its general bankruptcy counsel and Amory Securities as its financial advisor. The bankruptcy process aims to allow the business to restructure its finances with the assistance of a possible new investor while preserving the winery as an operating business.
The winery and tasting room will remain open during the restructuring period, and the Bundschus are hopeful about a new partnership that will strengthen the winery's platform for community, tourism, and economic growth.
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