Gundlach Bundschu Files for Chapter 11

Gundlach Bundschu Winery has filed for Chapter 11 bankruptcy protection, beginning a court-supervised restructuring as the Sonoma Valley business seeks to address about $39 million in debt. The winery is expected to remain open during the process, according to company and court accounts. The winery, founded in 1858 and operated by the sixth generation of the Bundschu family, filed in the U.S. Bankruptcy Court for the Northern District of California. Chief Executive Jeff Bundschu described the filing as unprecedented for the family and company in a court document. The financial distress, he said, places a burden on employees, vendors, lenders, customers and the community. The company’s filing identifies a prospective investor and operating partner, but does not name the party or establish that a deal has been reached. The identity and terms of any agreement remain unclear. The restructuring is intended to give the winery a chance to continue operating, but its eventual ownership and financial arrangements have not been confirmed. Court records put the company’s debt at about $39 million.