The struggling wine industry has lost some of its wineries to financial distress and closure this year, while others have needed to file for bankruptcy protection.
Among the challenged wineries in 2026 has been California-based Robledo Family Winery Inc.
The causes of the economic problems in the industry have included a 21% decrease in revenue from the Covid-19 pandemic in 2020 through 2025.
Wine industry revenue declines
The wine sector’s total revenue fell by $19.7 billion over the six-year period, or from $94 billion in 2020 to $74.3 billion in 2025, according to Silicon Valley Bank’s State of the U.S. Wine Industry Report.
Industry experts have blamed a decline in consumption by its top demographic, Baby Boomers, for the slowdown in wine sales. Some analysts, however, believe the industry might be heading for recovery.
“Consumption remains under pressure. That said, there is good news as the steepest part of the downturn appears to be waning and our analysis suggests we are entering a new phase in the correction,” wrote Rob McMillan, executive vice president of Silicon Valley Bank’s Wine Division and author of the report.
“Yes, 2026 will still be a challenging year, but the industry is at least approaching a point of stabilization,” McMillan wrote.
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Robledo Family Winery files bankruptcy
One of those challenged wineries is award-winning Robledo Family Winery Inc., which filed for Chapter 11 bankruptcy protection to reorganize its business and restructure its debts.
The 29-year-old Sonoma, Calif.-based winery filed its petition, Case No. 26-10229, in the U.S. Bankruptcy Court for the Northern District of California in Santa Rosa on April 8, listing $1 million to $10 million in assets and liabilities, according to Bankruptcy Observer.
Robledo Family Winery’s largest unsecured creditors include American Express, Kapitus, Winecare Logistics, and Crown Lift Trucks, according to a report from What Now Media.
The winery was founded in 1997 by Reynaldo Robledo Sr. and now-ex-wife Maria, after purchasing 13 acres in the Carneros appellation of Napa Valley in 1984 and growing the company, according to the company’s website.
Robledo Sr. got his start in the winery business after arriving from Atacheo, Mexico, in February 1968, and starting his first job the next day at Christian Brothers Winery in Napa, earning $1.10 an hour, the Press Democrat of Santa Rosa, Calif., reported in 2023.
Winery has won about 30 gold medals
Since launching Robledo Family Winery, the company’s wines have won about 30 gold medals and double-gold medals in national and local competitions.
Most recently, Robledo Family Winery won a silver medal in the 2025 San Francisco Chronicle Wine Competition for its 2015 Los Carneros Cuvee Brut.
Robledo Family Winery owns 450 acres of land in Sonoma, Napa, and Lake counties in California, and produces 15,000 to 20,000 cases of wine annually as of 2023, according to the Press Democrat.
The winery produces about 1,200 tons of grapes per year, of which the company sells a portion to other wineries.
Smaller wineries file for bankruptcy
Other, smaller wineries are also having a difficult time during the winery downturn, including Kerman, Calif., vineyard owner and wine producer Sran Vineyards LLC, which filed its petition on Feb. 23 in the U.S. Bankruptcy Court for the Eastern District of California in Fresno, to avoid a public auction of its assets, according to Bondoro.
30-year-old California winery Aloria Vineyards filed for Chapter 11 bankruptcy to reorganize its business and continue operating as a going concern, but did not list a specific reason for filing its petition.
More bankruptcies:
- Troubled automobile maker files Chapter 7 bankruptcy liquidation
- Major gambling destination files for Chapter 11 bankruptcy
- Major department store brand liquidates in Chapter 11 bankruptcy
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.
Aloria Vineyards will remain open during its restructuring and is still taking tasting room reservations.
Major winemakers close facilities
Other major wineries that have not filed for bankruptcy have instead closed underperforming wineries or facilities that have become obsolete.
E. & J. Gallo, the largest wine company in the U.S., is permanently closing its Ranch Winery in St. Helena, Calif., and laying off all 56 employees by April 15, 2026, the company announced in a Worker Adjustment and Retraining Notification (WARN) notice.
Another major winery, 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 WARN notice filed with the California Employment Development Department.
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