RNDC begins bankruptcy process
Republic National Distributing Co (RNDC) has filed for Chapter 11 bankruptcy protection, with major drinks companies including Proximo Spirits, Edrington and Pernod Ricard among its largest creditors.
The US alcohol distributor voluntarily began the Chapter 11 process on 26 July in the US Bankruptcy Court for the Southern District of Texas, Houston Division, along with 17 affiliated entities.
The Atlanta-based wholesaler listed estimated consolidated assets of US$500 million to US$1 billion and liabilities of US$1bn to US$10bn. The filing indicated that more than 100,000 creditors are involved and that funds are expected to be available for distribution to unsecured creditors.
The court filing noted that no alcohol distributor of its size had previously filed for Chapter 11.
RNDC said the bankruptcy process was made to “explore potential sale transactions in court and implement an orderly wind down of our remaining operations”.
The business has been gradually exiting markets over the past 12 months, beginning with its announcement last summer to leave California, which it blamed on “rising operational costs, industry headwinds and supplier changes”.
California was described as the largest market for alcohol sales in the US in the filing, with RNDC representing nearly 200 wineries and “countless other wine and liquor suppliers”.
RNDC’s bankruptcy filing said the exit from California in September reduced revenue and collateral in the short term, adding to the liquidity pressures that the company was already facing.
The document noted that while the California departure “saved RNDC from even greater operating losses had it remained in the market”, the exit “led to large volume and revenue losses, as well as operational challenges with respect to inventory and national suppliers, directly contributing to the straining financial health” of the business.
RNDC noted that it had begun a pre-bankruptcy sales process in late 2025. It hired financial adviser Lazard, which contacted more than 50 potential buyers about acquiring some of RNDC’s operations.
As such, more than 25 companies signed non-disclosure agreements, and more than 20 parties submitted non-binding indications of interest.
RNDC has issued multiple Worker Adjustment and Retraining Notification (WARN) notices in recent months, cutting hundreds of jobs across US states, including Ohio, Washington and Oregon.
RNDC: ‘increasingly challenging’ wholesale environment
In a statement regarding the Chapter 11 filing, RNDC said: “This decision was not made lightly. Over time, our industry has evolved, consumer preferences have shifted, and the wholesale environment has grown increasingly challenging.
“Over the last several months, we have taken deliberate steps to transition our operations across certain markets. We pursued and closed sales that preserved over 5,000 jobs and allowed our businesses in those markets to continue serving their customers and suppliers. Ultimately, RNDC’s financial position required us to pursue an in-court process.
“The court-supervised process is intended to give us the time and flexibility to continue working with parties that have expressed an interest in acquiring our other markets and conduct an orderly wind down of our remaining operations.”
According to RNDC, approximately 700 suppliers have transitioned to new distributors.
The business said it would continue to fulfil obligations under “certain transition service agreements” for some of its operations that have been sold.
The company’s transaction with Reyes was its largest, which expanded from seven markets to 11. This deal closed on 29 May and generated more than US$1bn in net proceeds, the filing noted.
RNDC subsequently completed additional agreements covering operations in Nebraska, North Dakota, South Dakota, and Arkansas. The company also agreed to sell its control state operations in 17 states to Martignetti Companies in April.
RNDC’s operations in Alaska are the only joint venture that is part of the bankruptcy process. In April, RNDC agreed to sell its Alaska, Oregon, and Washington operations to Columbia Distributing, with the latter two markets to be completed on 30 June 2026.
The Chapter 11 filing does not include National Distributing Company, which continues to operate separately. The business serves the Georgia and New Mexico areas.
Pernod and Edrington among creditors with multi-million-dollar claims
The US distributor said the expedited Chapter 11 process is designed to maximise recoveries for stakeholders, including holders of more than US$400m in general unsecured claims.
RNDC’s list of its 30 largest unsecured creditors includes a number of major wine and spirits makers. Jose Cuervo maker Proximo Spirits was listed with a US$93.9m unsecured claim, while Edrington, owner of The Macallan, was listed with a US$5.64m claim.
French firm Pernod Ricard was listed at US$4.07m, while MGP’s Luxco arm has a US$3.59m claim.
In addition, spirits distributor Misa Imports has a US$6.41m claim.
Other suppliers named on the list include Delicato Family Wines, Jackson Family Wines, Anheuser-Busch, J Lohr, Crimson Wine Group, Bogle Vineyards, Kobrand Spirits, Gallo, Vineyard Brands, Park Street Imports and Lone Star Wine & Spirits.
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