Republic Nationwide Distributing Firm has initiated Chapter 11 chapter proceedings to pursue potential gross sales of its remaining markets and wind down operations that can’t be bought.
RNDC filed July 26 within the U.S. Chapter Court docket for the Southern District of Texas. The corporate stated it acquired a financing dedication from sure lenders to assist its enterprise throughout the court-supervised course of.
“In the end, RNDC’s monetary place required us to pursue an in-court course of,” the corporate stated. “The court-supervised course of is meant to present us the time and adaptability to proceed working with events which have expressed an curiosity in buying our different markets and conduct an orderly wind down of our remaining operations.”
Chapter filings checklist RNDC’s estimated property at between $500 million and $1 billion and its liabilities at between $1 billion and $10 billion. The corporate reported greater than 100,000 collectors. Its 30 largest unsecured claims whole greater than $300 million, in response to commerce publication reviews that reviewed the filings.
Proximo Spirits, the producer of Jose Cuervo and different manufacturers, holds the most important listed unsecured declare at roughly $93.9 million. The declare contains commerce debt and litigation-related obligations. Suppliers collectively maintain lots of of thousands and thousands of {dollars} in unsecured claims, with some reportedly having gone months with out receiving cost from RNDC.
The chapter follows an prolonged interval of provider losses, market withdrawals, facility closures and asset gross sales for a corporation as soon as considered the second-largest U.S. wine and spirits distributor.
RNDC’s troubles intensified after its distribution relationship with Sazerac led to early 2023 amid litigation over unpaid invoices, stock and the businesses’ respective obligations. Extra suppliers subsequently moved their enterprise elsewhere, contributing to RNDC’s 2025 withdrawal from California and the closure of its operations there.
RNDC then started transferring a lot of its remaining footprint to competing distributors. In Might, Reyes Beverage Group accomplished its acquisition of RNDC operations throughout 11 markets, together with Arizona, Colorado, Florida, Louisiana, Maryland, Oklahoma, South Carolina, Texas, Virginia and Washington, D.C. The Hawaii portion of that transaction remained topic to regulatory approval on the time of closing.
Columbia Distributing subsequently acquired key RNDC brand-distribution rights in Oregon and Washington. These market exits have been accompanied by plans to shut a number of amenities and eradicate greater than 400 positions throughout the 2 states.
RNDC stated its accomplished transactions preserved greater than 5,000 jobs and allowed the transferred companies to proceed serving suppliers and clients. The corporate intends to proceed assembly its obligations beneath transition-services agreements linked with the gross sales.
Nationwide Distributing Firm Inc. is just not included within the chapter. RNDC’s joint ventures in New York, Illinois, Ohio, Michigan, Indiana and Kentucky are additionally excluded, whereas its Alaska three way partnership is included within the submitting.
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