California’s oldest family-owned winery declares bankruptcy as industry struggles mount

The oldest family-owned winery in California has filed for bankruptcy and is looking to sell — a heartbreaking situation that stems from multiple financial burdens that began with the COVID pandemic.

Gundlach Bundschu, which has existed in Sonoma County, California, since 1858, has been struggling since 2020, when the industry was hit by a slowdown during the pandemic and never fully recovered, according to the LA Times. Now, the owners are filing for Chapter 11.

This is not the first California winery to close recently. Numerous vineyards have shuttered because of tariffs, wildfires, and lack of demand. This latest institutional closure reflects the pressures being felt across the Californian wine business.

“When you become the kind of institution that Gundlach Bundschu has become in our community, it’s as much about all the people that are involved, and everybody who works there sort of has a spirit of caretaking,” said Jeff Bundschu, a member of the founding family and president of the winery. “It’s almost more important than who owns it.”

The winery is looking for a new owner for the first time in six generations of Bundschu ownership, though the family is hoping to remain involved in operations.

One factor that has been especially felt by the business is a sharp decline in exports to Canada following President Donald Trump’s trade war.

The tariffs implemented by the President against Canadian goods, which were then matched by Canada, resulted in a Canadian boycott of American alcohol.

One central Californian winery, McManis Family Vineyards, previously sent 40 percent of its exports to Canada. That number has fallen precipitously to just 5 percent.

McManis Family Vineyards is now having to sell off 3,500 acres of property covered by ten vineyards and its sprawling winery in Ripon, about 50 miles east of San Francisco.

“It was a very hard decision for myself and my family,” vineyard president and co-owner Ron McManis told The Sacramento Bee.

California has also been hit by a series of lethal wildfires since early 2025, which piled more debt onto wine businesses.

It’s not just small businesses being impacted by these compounding events. Constellation Brands, the company that owns Modelo and Corona beers as well as Mission Bell Winery in Madera, California, is planning to lay off 212 employees at the winery in a shift to beer.

Gallo Winery, which has an annual financial turnaround in the billions, is planning to lay off 90 employees by January 2027 and will be closing a facility in Napa Valley.

Americans are also drinking less than ever before. According to Gallup polling from 2025, only 54 percent of Americans say that they consume alcohol. This is the lowest recorded percentage of drinkers in 90 years. Gallup pollsters believe it is largely down to Americans, and particularly young Americans, aiming to be more health-conscious.

Although the winery is filing for bankruptcy, Gundlach Bundschu is still open for business amid the management changeover.

“I need to reiterate 1,000 times, we’re wide open,” Bundschu told the LA Times. “Any visitors to the place won’t know a difference.”