After Rising From Flames, Napa Valley Winery Faces Crushing Debt, Bankruptcy

NAPA VALLEY, CA — A Napa winery that rebuilt after the Atlas Fire devastated its property filed for Chapter 11 bankruptcy protection this week, postponing a foreclosure auction and placing its future before a federal judge.

Owners of the Signorello Estate submitted a voluntary petition on Thursday to the U.S. Bankruptcy Court for the Northern District of California, according to reports.

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The petition estimates Signorello Estate's assets and liabilities at between $10 million and $50 million each.

The winery reported between 100 and 199 creditors, according to court records.

American AgCredit moved to foreclose on the winery's land, buildings, equipment, and right to use the Signorello Estate name, citing about $37 million in debt, according to reports.

The bankruptcy filing postponed a public auction scheduled outside the Napa County Courthouse until Sept. 25.

The filing identified wine-packaging company G3 Enterprises as the winery's largest unsecured creditor, with a claim of nearly $88,000.

Other major creditors include the Liquor Control Board of Ontario and barrel and cork suppliers, according to Inc.

Signorello Estate asked the court to let the winery continue using its bank accounts, pay wages and benefits owed before the filing, maintain insurance, pay certain taxes and shipping obligations, obtain secured financing, and use cash collateral.

The court docket lists a hearing on those initial requests for Sept. 2 at 10 a.m. by telephone or videoconference.

Ray Signorello Jr. and his father founded Signorello Estate in 1977. The winery produces cabernet sauvignon and Bordeaux blends.

The 2017 Atlas Fire destroyed the original winery. Signorello spent six years rebuilding before the estate opened a new 20,000-square-foot facility in 2024.

Permit delays, an insurance dispute, and the COVID-19 pandemic extended the project beyond its original schedule and budget, according to reports.