By New York Post (U.S.) | Created at 2026-09-23 23:41:43 | Updated at 2026-09-24 00:24:51
44 minutes ago
California’s oldest continuously family-owned winery has survived earthquakes, Prohibition, wildfires and a pandemic — but a crushing pile of debt has finally forced the 168-year-old Sonoma institution into bankruptcy court.
Gundlach Bundschu Winery announced that it has filed for Chapter 11 bankruptcy protection as the sixth-generation family behind the historic estate scrambles to restructure its finances and potentially bring in a new investor.
The winery, founded in 1858, stressed that its doors aren’t closing. Wine will continue flowing at its sprawling Sonoma estate while the bankruptcy process plays out.
“For six generations, our family believed that Gundlach Bundschu is more than a winery. It is a core part of Sonoma Valley,” said Jeff Bundschu, who operates the business alongside his sister, Katie.
The filing comes after a brutal stretch for the California wine industry and following Gundlach Bundschu’s accumulating a debt load it says became impossible to sustain in the post-pandemic economy.
The family traces its connection to the property back to 1858, when the land was acquired from the son-in-law of famed California military commander and politician Gen. Mariano Vallejo.
Since then, “GunBun,” as the winery is affectionately known, has endured almost everything imaginable.
It weathered the phylloxera infestation that ravaged vineyards in the 1870s and the catastrophic 1906 San Francisco earthquake, which destroyed three family homes and a staggering 1 million gallons of wine.
The winery later made it through Prohibition, wars, recessions, devastating wildfires and COVID-19.
But its latest financial crisis proved especially difficult.
According to the company, its troubles intensified after a major debt-financed acquisition in 2020, just before the pandemic upended the hospitality and wine industries.
Instead of providing the stronger foundation the family envisioned, the investment collided with changing drinking habits, falling wine demand, distributor consolidation, excess inventory and declining demand for grapes and contract wine production.
Over the past three years, Gundlach Bundschu said it slashed expenses by more than 40% or approximately $6 million.
The Bundschus also poured substantial personal assets into keeping the operation afloat, including pledging and selling real estate outside the winery. The family said its historic home, rebuilt after being destroyed in the 2017 Tubbs Fire, is now at risk to lenders.
Before turning to bankruptcy court, the family said it tried to negotiate with lenders but rejected an offer for millions of dollars in additional financing because of what it described as an onerous cost of capital.
Instead, Chapter 11 could pave the way for a new ownership structure and an investor with enough cash to keep the winery operating while preserving its ties to Sonoma.
“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.
The bankruptcy lands as America’s wine business grapples with a broader hangover. U.S. wine sales have fallen sharply from their pandemic-era highs as younger consumers increasingly gravitate toward canned cocktails, hard seltzers and alcohol-free alternatives. Health-conscious drinking habits have also added pressure to the industry.
