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Republic National Distributing Company, the second-largest wine and spirits distributor in the United States, has filed for Chapter 11 bankruptcy protection and will begin an orderly wind down of its remaining operations. The company announced that it initiated the voluntary filing in the Southern District of Texas, citing changing consumer preferences, increased costs, and a more difficult wholesale environment as key reasons for its financial distress, according to a statement on the company's website.
The bankruptcy filing comes after more than 125 years in business, marking a significant shift in the U.S. alcohol distribution industry. Republic National Distributing Company (RNDC) said it has assets between $500 million and $1 billion and liabilities ranging from $1 billion to $10 billion, with more than 100,000 creditors. Major wine and spirits companies such as Proximo Spirits, Delicato Family Wines, Pernod Ricard, Luxco, and EJ Gallo are among the largest unsecured creditors, collectively owed over $300 million.
In recent months, RNDC exited major markets—including California—and sold parts of its business to competitors like Reyes Beverage Group and Columbia Distributing. These moves, the company claims, helped preserve over 5,000 jobs. The bankruptcy process will allow RNDC to continue operating certain transition services and explore potential sale transactions for its remaining markets, according to the official company update.
The filing does not include National Distributing Company, which merged with Republic Distributing in 2007, or joint ventures in Illinois, Indiana, Kentucky, Michigan, Ohio, and New York. Only the joint venture in Alaska has been included in the bankruptcy. The company affirmed its commitment to paying employees during the wind-down and acknowledged the uncertainty facing its roughly 1,450 remaining workers.
The bankruptcy court will now oversee RNDC’s plan for selling off its remaining assets and handling creditor claims. The outcome could have lasting effects on the U.S. beverage alcohol distribution system.