Alcohol Giant RNDC Files for Bankruptcy with Debts Reaching $10 Billion
A storm in the American alcohol market: RNDC, long-standing second-largest wine and spirits distributor in the U.S., has officially filed for bankruptcy in a Texas court.
A storm in the American alcohol market: Republic National Distributing Company (RNDC), formerly the second-largest wine and spirits distributor in the United States, has officially filed for bankruptcy (Chapter 11) in a Texas court. The company stated that the move is intended to explore potential sale transactions and to carry out an orderly wind-down of its remaining operations.
According to the filing documents, the company's liabilities range from $1 billion to $10 billion, while its assets are valued at only $500 million to $1 billion. The company noted that its joint venture in the state of Kentucky is not included in the bankruptcy proceedings.
The list of the distribution giant's unsecured creditors includes several of the world's largest beverage companies. The largest and most prominent debt is to Proximo Spirits, the producer of "Jose Cuervo" tequila, which stands at approximately $94 million.
Other significant debts include:
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Approximately $14 million to Delicato Family Wines
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Approximately $4 million to the beverage giant Pernod Ricard
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Over $3.5 million to Luxco, owner of the Yellowstone and Rebel bourbon brands
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Approximately $1.9 million to E. & J. Gallo (currently the owner of bourbon producer Four Roses)
The collapse of RNDC follows a prolonged period of financial difficulty. In recent months, the company exited operations in key markets, including California—a move it said preserved approximately 5,000 jobs. The company explained that the industry has evolved, consumer preferences have shifted, and the wholesale environment has become increasingly challenging.
Alongside market changes, the company has suffered in recent years from the departure of prominent bourbon and alcohol brands, including Sazerac and Brown-Forman. Alcohol producer Sazerac sued RNDC in January 2023, alleging unpaid invoices totaling approximately $38.6 million—a claim against which a counterclaim was filed, and legal proceedings remain ongoing in federal court.
