California’s historic Gundlach Bundschu Winery, founded in 1858, files for Chapter 11 bankruptcy

By Carlos E. Castañeda

California’s historic Gundlach Bundschu Winery, one of the oldest wineries in the U.S., announced it filed for Chapter 11 bankruptcy reorganization on Wednesday, the latest sign of challenges in the industry. 

The Sonoma winery was founded in 1858 and holds the distinction of being California’s oldest continuously family-owned winery. Gundlach Bundschu said in a press release that the effects of the post-pandemic economy and an unsustainable debt burden created financial pressures it could no longer address outside a court-supervised restructuring.

The winery said a debt-financed acquisition just before the pandemic, along with wine market disruptions such as changing consumer behavior, declining demand, excess inventory, distributor consolidation and other factors combined to force the bankruptcy decision. 

Owner Jeff Bundschu, a sixth-generation family member who runs the winery with his sister Katie Bundschu, said the bankruptcy filing will allow it to remain open while the court, creditors and “a potential new investor” can figure out a new business framework.

“We got to live in a world for years where there was sort of an increasing pie, and, you know, we all got to benefit from that,” Bundschu told CBS News Bay Area. “And now that pie is not going to be increasing, we’re going to have to work harder for the same customers, and work harder to attract new ones.”

The company said it expects the bankruptcy process to 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.

“This is about creating a fair, court-supervised process that gives this historic business an opportunity to survive, preserve jobs, protect relationships with customers and vendors, and ensure the winery remains a meaningful part of the Sonoma Valley community,” Bundschu said in a prepared statement. “We are excited to partner with a family organization that recognizes the importance and value of our family operation to Sonoma Valley.”

Gundlach Bundschu Winery plans to remain open to guests and wine club members during the bankruptcy proceeding.