Republic National Distributing Company’s ongoing wind-down will eliminate 558 jobs in Georgia, according to four WARN notices filed Aug. 26 with the state.
The notices cover employees across RNDC and affiliated entities, with each listing an Oct. 19 closure date:
- Republic National Distributing Company LLC: 321 positions
- Republic National Distributing Company of Texas LLC: 157
- Young’s Market Company LLC: 78
- Young’s Market Company of Arizona LLC: 2
The filings bring another major round of workforce reductions for the once-sprawling wine and spirits distributor, which entered Chapter 11 bankruptcy proceedings July 26.
RNDC filed in the U.S. Bankruptcy Court for the Southern District of Texas to pursue sales of remaining businesses where buyers could be found and conduct an orderly wind-down elsewhere. Bankruptcy filings estimated the company’s assets at $500 million to $1 billion and liabilities at $1 billion to $10 billion, with more than 100,000 creditors. Its 30 largest unsecured claims totaled more than $300 million.
The bankruptcy followed months of market exits and asset sales. Most notably, Reyes Beverage Group completed its acquisition of RNDC operations across 11 markets in May, a transaction RNDC said preserved more than 5,000 jobs. Other operations and distribution rights were transferred to distributors including Columbia Distributing and Quality Brands.
Additional transactions have emerged since the bankruptcy filing. On July 31, RNDC’s New York joint venture sold the vast majority of its assets — including inventory, distribution rights and equipment — to Manhattan Beer Distributors’ New York Wine & Spirits.
Meanwhile, Keg 1 River City and K1 Management Services in August signed a letter of intent to acquire RNDC’s Kentucky business. The proposed deal, which would add about 2 million cases annually to Keg 1’s portfolio, remains subject to court and regulatory approvals.
RNDC has also moved further into the physical dismantling of its remaining network. A bankruptcy judge on Aug. 20 approved the company’s first request to reject certain leases and abandon related property, followed by another lease-rejection motion Aug. 25. The court has additionally approved procedures for RNDC to sell, abandon or destroy certain smaller assets as it reduces its remaining footprint.
Related Posts
-
The major wine and spirits distributor entered bankruptcy after transferring most of its markets to…
-
The deal marks RNDC’s latest divestment following its May sale of 11 geographic markets to…
-
Some employees may ultimately transition to roles under new ownership depending on final deal structures.
