Decline of drinking drives huge US liquor distributor into bankruptcy

One of America’s oldest wine and liquor distributors has filed for bankruptcy after more than 125 years in business, blaming shifting drinking habits, soaring costs and an increasingly difficult wholesale market for its downfall.

Republic National Distributing Company, once the nation’s second-largest wine and spirits distributor, filed for Chapter 11 bankruptcy protection on Sunday and will begin an orderly wind down of its remaining operations.

The filing marks a stunning reversal for a company whose roots stretch back to 1898, surviving through Prohibition, multiple recessions and generations of change in the alcohol industry.

The company said the bankruptcy covers all remaining corporate and distribution operations that it still owns outside of its joint ventures.

‘This decision was not made lightly,’ Republic said in a statement announcing the bankruptcy.

‘Our industry has evolved, consumer preferences have shifted and the wholesale environment has grown increasingly challenging,’ read the statement.

According to court filings, Republic has between $500 million and $1 billion in ᴀssets, but liabilities estimated at between $1 billion and $10 billion. The filing lists more than 100,000 creditors.

The distributor said it chose a court-supervised Chapter 11 process to provide the flexibility ‘to continue working with parties that have expressed an interest in acquiring our other markets.’

Republic National Distributing Company filed for Chapter 11 bankruptcy protection on Sunday and will begin an ‘orderly wind down’ of its remaining operations (pictured Republic’s Tallahᴀssee, Florida team at the Florida State University 2024 career fair)

Republic National Distributing Company CEO Bob Hendrickson

The company stressed that it had already taken ‘deliberate steps’ to transition many of its operations to preserve more than 5,000 jobs.

‘As we move through this process, we intend to continue to meet our obligations under certain transition service agreements related to the previously disclosed sales of certain of our operations,’ the company said. 

‘We have received a commitment for financing from certain of our lenders to support the business during the Chapter 11 process.’

Republic’s troubles have been building for years.

The distributor had already exited California last year, blaming ‘rising operational costs, industry headwinds, and supplier changes’ for making business in the state unsustainable. 

At the time, Republic CEO Bob Hendrickson said the company was ‘using this moment to sharpen our focus and reinvest in the markets where we’re best positioned to grow.’

This year the company sold distribution operations across Arizona, Colorado, Florida, Louisiana, Maryland, Oklahoma, South Carolina, Texas, Virginia, Washington D.C., Oregon and Washington to rivals including Reyes Beverage Group and Columbia Distributing.

The bankruptcy comes as the alcohol industry grapples with one of its toughest periods in decades.

According to court documents, alcohol consumption has fallen sharply since 2022, with the proportion of US adults who identify as regular drinkers reaching its lowest level in nearly 90 years.

The distributor had already exited California last year due to rising operational costs, industry headwinds and supplier changes (pictured Republic’s Maui leadership team)

The filing marks a stunning reversal for a company whose roots stretch back to 1898 – long enough to survive Prohibition, multiple recessions and generations of change 

California wine industry on its knees as problems doing business in the state get worse

The post-pandemic return to bars and restaurants also left many distributors with excess inventory after demand for alcohol purchased for home consumption cooled dramatically.

Higher interest rates, persistent inflation and changing consumer habits have compounded the pressure, while major suppliers have increasingly shifted their business elsewhere.

Between 2022 and 2025, Republic lost several key supplier relationships that together accounted for more than $3 billion in annual revenue. 

Brands including тιтo’s Handmade Vodka, Brown-Forman and High Noon all moved distribution to compeтιтors.

Industry experts warn the fallout could extend well beyond Republic.

David Kozlowski, a partner in the bankruptcy, restructuring and governance practice at Morrison Cohen LLP, told Inc. that smaller suppliers could now face serious financial pressure.

‘Smaller suppliers who don’t have leverage … could be in real financial distress, as any significant prepeтιтion exposure could put them in a hole that’s simply too deep to climb out of,’ Kozlowski said.

‘A spate of smaller bankruptcies in the industry could follow over the next twelve months.’

Founded in Pensacola, Florida, in 1898 as N. Goldring Corporation, Republic became the state’s first licensed beer distributor before expanding into one of the largest alcohol wholesalers in America.

Following its merger with National Distributing Company in 2007, the business grew into a distribution powerhouse spanning around 40 states and generating roughly $12 billion in annual revenue at its peak.