Bankruptcy Threatens Gundlach Bundschu, CA's Oldest Family Winery: Report

SONOMA VALLEY, CA — The Bundschu family expects to lose majority ownership of Gundlach Bundschu as the winery seeks an investor through Chapter 11 bankruptcy.

The change would end its standing as California’s oldest continuously family-owned winery.

The family-run Bundschu Co. filed for bankruptcy Wednesday, Sept. 23, the Press Democrat reported.

The winery will remain open during the court-supervised restructuring while the company negotiates with a large, unidentified potential investor. The family expects to retain a minority stake.

“The decision to commence this case was not made lightly,” CEO Jeff Bundschu wrote in a declaration supporting the filing.

He said the company had cut costs, contributed family capital, negotiated with lenders, and sought investment or a sale, but could not reach an agreement outside court, the Press Democrat reported.

Jeff Bundschu runs the business, registered as Vineburg LLC, with his sister, Katie Bundschu Tynan. Representatives said a recent acquisition left the company overleveraged.

Over the past 18 months, the company cut operating costs by more than 50%, saving approximately $7 million, and reduced its workforce from 120 employees to 63.

It stopped retail sales at its Abbot’s Passage label in July and plans to close the Glen Ellen facility in early October. Bundschu Tynan previously told The Press Democrat the family would sell the Abbot’s Passage acreage, though the bankruptcy could limit that plan.

The company is hiring Finestone Hayes as bankruptcy counsel and Amory Securities as financial advisor, according to the Press Democrat.