Second-largest U.S. liquor distributor goes bankrupt: $1 billion debt involves multiple equipment financing institutions
Republic National Distributing Co. (RNDC), the second-largest U.S. liquor and wine distributor, filed for Chapter 11 bankruptcy protection on July 26, with estimated liabilities exceeding $1 billion. Bankruptcy filings show that multiple equipment financing institutions are listed among creditors, with First American Commercial Bancorp holding an unsecured equipment lease claim of $47.2 million. Company restructuring officer John Castellano disclosed on August 3 that approximately $7 million in principal and interest on equipment loans remains unpaid. RNDC has retained over 5,000 jobs by selling certain market assets and continues to explore a full sale or orderly liquidation.
Quick Overview
- The second-largest alcoholic beverage and wine distributor in the U.S. filed last month forChapter 11 bankruptcy protection, leaving some trucking industry lenders exposed to financial risk.
- First American Commercial Bancorp is one of the largest creditors listed in the bankruptcy filing, with an unsecured claim of $47.2 million for equipment leases.
- John Castellano, the company's chief restructuring officer, said in an August 3disclosure statementthat RNDC also owes "multiple banks and financing counterparties" approximately $7 million in principal and interest on equipment loans.
In-Depth Analysis
Texas-based RNDC is sustaining operations by divesting assets, such as a May deal withReyes Beverage Groupfor cross-state markets and a June deal withColumbia Distributing.
Despite RNDC's nationwide layoffs this year, the company said in a statement that these pre-bankruptcy deals preservedmore than 5,000 jobs. According to state database records, for example, Worker Adjustment and Retraining Notification notices in Texas and Michigan involved layoffs of over 1,900 and 641 people, respectively.
Chapter 11 proceedings are designed for reorganization, but according to the disclosure statement, RNDC is still using the process to wind down and liquidate its operations. The distributor also said it continues to explore the possibility of selling its entire business.
"The court-supervised process is designed to provide us with time and flexibility to continue engaging with parties interested in acquiring our other markets and to conduct an orderly liquidation of the remaining business." — Company statement
The number-two distributor has faced setbacks in growth: it attempted to enter the California market but exited in June 2025; meanwhile, after a sales surge during the COVID-19 pandemic, the company has faced declining sales, Castellano noted in the disclosure statement.
Castellano mentioned that the distributor's supply chain was once composed of 1,800 vehicles, part of a vast fulfillment network equipped with warehouse automation systems and 24-hour turnaround delivery capabilities. Federal databases show its private commercial vehicle fleet had895 tractorsand 883 drivers in late January.
The August 20master service listlists Daimler as an equipment loan lender and includes an attorney representing Truist Equipment Finance.
Equipment financiers are just a small fraction of the more than 100,000 creditors, whose estimated total liabilities exceed $1 billion. The voluntary bankruptcy filing on July 26 estimated assets below liabilities but at least above $500 million.