Gundlach Bundschu Winery filed for Chapter 11 on Sept. 23, seeking to restructure its finances and attract a potential investor. The 168-year-old California winery says it will continue operating during the case; its petition lists $10 million to $50 million in assets and debts.
The owners said the post-pandemic economy and an unsustainable debt burden left the winery unable to address its financial pressures outside court. The family said it committed personal assets and cut expenses by more than 40% over the past 36 months, but remained highly leveraged; it rejected lender offers as too costly.
A Silicon Valley Bank report cited in the article says U.S. wine-industry revenue fell 21% from 2020 through 2025 amid declining demand, changing consumer attitudes and excess inventory. The family also closed Abbot’s Passage on June 28, 2026, after about 10 years; owner Katie Bundschu told the San Francisco Chronicle that declining visits to Sonoma Valley wine country and other industry challenges made it unsustainable.
