Historic Sonoma winery Gundlach Bundschu files Chapter 11 amid mounting debt

Gundlach Bundschu Winery, founded in 1858 and renowned as California’s longest continuously family-owned winery, filed for Chapter 11 bankruptcy protection as it confronts a debt burden that grew after a leveraged purchase in 2020 and the subsequent pandemic slump. Jeff Bundschu, who runs the business with his sister Katie, emphasized that the winery will remain open and continue producing wine during the restructuring.

The family has already reduced expenses by over 40%—about $6 million—and sold off real-estate holdings outside the estate, putting even their historic home at risk of lender claims. The filing aims to attract a cash-rich investor and possibly reshape ownership while safeguarding jobs, vendor relationships, and the winery’s cultural significance in Sonoma Valley. This move reflects broader challenges in the U.S. wine sector, where sales have slipped as younger drinkers shift toward alternative beverages.