Another troubled winery files Chapter 11 bankruptcy protection

Economic challenges facing the wine industry have led to a surge in winery closings and, in some cases, bankruptcies.A significant decline in industry revenue over the last six years, since the beginning of the Covid-19 pandemic, has been a major contributor to winery distress.The Great Wine Decline since the pandemic in 2020 has led to a 21% decrease in revenue, or a $19.7 billion drop, from $94 billion in 2020 to $74.3 billion in 2025, according to Silicon Valley Bank’s State of the US Wine Industry Report.Industry volume has suffered as well. For example, the wine industry's volume declined to 329 million cases in 2025, compared to 335.9 million cases in 2024.Declining consumption leads to distressWine experts blame a decline in consumption from the industry's top demographic: Baby Boomers. They say Boomers are drinking less wine, and younger generations, such as Gen Z, are drinking wine at a lower rate than the leading age group.“Boomers are drinking less, and there are fewer of them every day,” wrote Rob McMillan, executive vice president and founder of the Silicon Valley Bank Wine Division.“They are replaced by the younger cohorts who aren’t as much in love with wine as their elders,” McMillan, author of the Wine Industry Report, wrote.Two giant wine companies announced major winery closings in February.Giant wine companies close facilitiesThe largest wine company in the U.S., E. & J. Gallo, is permanently closing its Ranch Winery in St. Helena, Calif., and laying off all 56 employees by April 15, 2026, according to a Worker Adjustment and Retraining Notification notice it filed with the California Employment Development Department on Feb. 12.Gallo also filed WARN notices to lay off 37 other employees by April 15 at four of its wine facilities, including Louis M. Martini Winery and Orin Swift Tasting Room in St. Helena, Calif., and J Vineyards & Winery and Frei Ranch in Healdsburg, Calif.Another huge wine company, Jackson Family Wines, which makes 40 wine brands, said it will permanently close its Carneros Hills Winery in Sonoma, Calif., and lay off 13 workers by April 17, 2026, according to a Worker Adjustment and Retraining Notification notice filed with the California Employment Development Department. Sran Vineyards LLC files for Chapter 11 bankruptcy to reorganize its business.Shutterstock Sran Vineyards files for bankruptcyAnd now, another smaller California wine company, Sran Vineyards LLC, has filed for Chapter 11 protection to avoid a public auction of its assets after allegedly defaulting on a business loan.The Kerman, Calif., vineyard owner and wine producer filed its petition on Feb. 23 in the U.S. Bankruptcy Court for the Eastern District of California in Fresno, listing $10 million to $50 million in assets and liabilities, according to court papers provided by Bondoro.The debtor indicated that funds would be available to distribute to unsecured creditors.The bankruptcy filing triggers an automatic stay of legal actions against the debtor while the case proceeds.More bankruptcies:73-year-old family diner franchisee files Chapter 11 bankruptcyMore troubled regional airlines file for Chapter 11 bankruptcyMajor department store brand liquidates in Chapter 11 bankruptcySran Vineyards, located in the Fresno, Calif., suburb, owes Bank of Sierra $13 million on a 2023 agriculture security agreement, along with the wine company's partners Diamond West Farming Company Inc. and wine brand Krushwerks LLC.The bank filed a Notification of Disposition of Collateral in December 2025, authorizing its agent, WT Capital Lender Services, to sell the debtor's assets that were used as collateral for the loan, according to a public notice published in The Business Journal Fresno.An auction of Sran Vineyard's assets was reportedly scheduled for March, according to RK Consultants.Sran Vineyards maintains about 436 acres of irrigated land in the San Antonio Basin Water District in Santa Barbara County, Calif., according to RK Consultants.Smaller winery bankruptcyAlso, a small California winery, Aloria Vineyards, filed for Chapter 11 bankruptcy to reorganize its business and continue operating.The Vallecito, Calif.-based winery, which also operates a tasting room in Murphys, Calif., in the Sierra foothills, filed its petition in the U.S. Bankruptcy Court for the Eastern District of California in Fresno on Feb. 24, according to Omni Agent Solutions.Winery economic challengesE.&J. Gallo: Ranch Winery in St. Helena, Calif., closes April 15, 2026. Source : California Employment Development DepartmentJackson Family Wines: Carneros Hills Winery in Sonoma, Calif., closes April 17, 2026.Source: California Employment Development DepartmentSran Vineyards: Chapter 11 bankruptcy filing, Feb. 23, 2026. Source: BondoroAloria Vineyards: Chapter 11 bankruptcy filing, Feb. 24, 2026. Source: Omni Agent SolutionsRelated: Major gambling destination files for Chapter 11 bankruptcy