Another California winery is struggling, being sued by lenders amid a slump in wine demand

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Set us as preferred A longtime Sonoma winery could be forced to shutter to pay millions in overdue debt, potentially becoming the latest casualty in California wine country.Ehren Jordan Wine Cellars’ lender, First Citizens Bank & Trust Co., sued the winery in Napa County Superior Court.First Citizens Bank & Trust filed the lawsuit on Nov.

4 against winemaker David Ehren Jordan and his company, Ehren Jordan Wine Cellars.The bank, which took over the loan through its acquisition of Silicon Valley Bank, said the defendants owed at least $17.5 million in unpaid principal and interest, with interest accruing at more than $2,500 per day.

Business With wine consumption down, major California wine companies are laying off workers and shuttering production facilities.According to the complaint, Jordan and the winery entered into the loan agreement with Silicon Valley Bank in April 2022 and have repeatedly failed to meet the loan terms, even after extensions.Amendments gave the winery until April 30 to find an investor or buyer to put up at least $8 million toward the debt.

The bank alleges the winery failed to do that.Business California’s oldest family-run winery has filed for bankruptcy protection, another sign of the struggles in the wine industry.

First Citizens declined a request for comment.Ehren Jordan Wine Cellars is the company behind Failla Wines, an award-winning label.Founded as Failla Jordan in 1998, the label was named for winemaker David Ehren Jordan and his wife, Anne-Marie Failla.The bank asked the court to authorize foreclosure of five of Jordan’s properties in Napa and Sonoma.

Jordan did not respond to a request for comment.From trade disruptions to falling demand, California wineries are facing a tough market.According to the Wine Institute, an advocacy group that represents California wineries,...