Republic National Distributing Company has initiated Chapter 11 bankruptcy proceedings to pursue potential sales of its remaining markets and wind down operations that cannot be sold.

RNDC filed July 26 in the U.S. Bankruptcy Court for the Southern District of Texas. The company said it received a financing commitment from certain lenders to support its business during the court-supervised process.

“Ultimately, RNDC’s financial position required us to pursue an in-court process,” the company said. “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.”

Bankruptcy filings list RNDC’s estimated assets at between $500 million and $1 billion and its liabilities at between $1 billion and $10 billion. The company reported more than 100,000 creditors. Its 30 largest unsecured claims total more than $300 million, according to trade publication reports that reviewed the filings.

Proximo Spirits, the producer of Jose Cuervo and other brands, holds the largest listed unsecured claim at approximately $93.9 million. The claim includes trade debt and litigation-related obligations. Suppliers collectively hold hundreds of millions of dollars in unsecured claims, with some reportedly having gone months without receiving payment from RNDC.

The bankruptcy follows an extended period of supplier losses, market withdrawals, facility closures and asset sales for a company once regarded as the second-largest U.S. wine and spirits distributor.

RNDC’s troubles intensified after its distribution relationship with Sazerac ended in early 2023 amid litigation over unpaid invoices, inventory and the companies’ respective obligations. More suppliers subsequently moved their business elsewhere, contributing to RNDC’s 2025 withdrawal from California and the closure of its operations there.

RNDC then began transferring much of its remaining footprint to competing distributors. In May, Reyes Beverage Group completed its acquisition of RNDC operations across 11 markets, including Arizona, Colorado, Florida, Louisiana, Maryland, Oklahoma, South Carolina, Texas, Virginia and Washington, D.C. The Hawaii portion of that transaction remained subject to regulatory approval at the time of closing.

Columbia Distributing subsequently acquired key RNDC brand-distribution rights in Oregon and Washington. Those market exits were accompanied by plans to close several facilities and eliminate more than 400 positions across the two states.

RNDC said its completed transactions preserved more than 5,000 jobs and allowed the transferred businesses to continue serving suppliers and customers. The company intends to continue meeting its obligations under transition-services agreements connected with the sales.

National Distributing Company Inc. is not included in the bankruptcy. RNDC’s joint ventures in New York, Illinois, Ohio, Michigan, Indiana and Kentucky are also excluded, while its Alaska joint venture is included in the filing.