US distributor RNDC files for Chapter 11

US vino and spirits distributor Republic National Distributing Company (RNDC) has filed for bankruptcy successful Texas pursuing a bid of disposals of parts of its business.

In a statement, the embattled distributor said it has started a voluntary Chapter 11 process to "explore imaginable merchantability transactions successful court" and transportation retired an "orderly upwind down" of its remaining operations.

"The court-supervised process is intended to springiness america the clip and flexibility to proceed moving with parties that person expressed an involvement successful acquiring our different markets and behaviour an orderly upwind down of our remaining operations," the connection read.

According to the Chapter 11 filing, RNDC said it has betwixt $1bn and $10bn successful liabilities against assets valued betwixt $500m and $1bn.

The filing does not use crossed the distributor's full firm footprint.

National Distributing Company, which merged with RNDC successful 2007, is excluded from the filing. Furthermore, among the company's assorted determination partnerships, lone the Alaska associated task is included successful the bankruptcy petition astatine this stage.

The institution confirmed that its associated ventures successful New York, Illinois, Ohio, Michigan, Indiana and Kentucky stay extracurricular of the Chapter 11 process.

In May, Breakthru Beverage Group (BBG) signed a missive of intent (LOI) to bargain RNDC's interests successful its Kentucky and Indiana associated task operations.

Quality Brands Distributing has besides reached an statement connected a transaction to get RNDC's operations successful Nebraska, South Dakota and North Dakota.

In April, RNDC signed a non-binding LOI to merchantability "certain vino and spirits organisation rights" successful Oregon and Washington" to Columbia Distributing. That woody went done past month.

It besides sold operations spanning 10 states and Washington, DC to Reyes Beverage Group this year.

RNDC said yesterday the transitions preserved "over 5,000 jobs", though its "financial position" yet forced it to prosecute an in-court process.

"As we determination done this process, we mean to proceed to conscionable our obligations nether definite modulation work agreements related to the antecedently disclosed income of definite of our operations," it said.

The institution added it has secured a financing committedness from definite lenders to enactment operations done the bankruptcy process.

"US distributor RNDC files for Chapter 11" was primitively created and published by Just Drinks, a GlobalData owned brand.