The "father" of Santa Barbara Pinot Noir has recently filed for Chapter 11 bankruptcy
On July 27, 2012, Richard Sanford filed chapter 11 bankruptcy for his third winery at Alma Rosa, in Santa Barbara. Richard Sanford is better know for his Sanford Winery which was featured in the popular 2004 movie "Sideways."
The winery claimed between $1 million and $10 million in assets and liabilities in the same range. Sanford says the recession in caused their sales to be dramatically reduced. This was compounded by years of poor harvesting that resulted in limited amount of wine available for sale.
Filing for bankruptcy was to prevent a foreclosure sale of his home ranch and the winery's inventory that had been set for public auction on July 30 by the winery's major creditor, the Silicon Valley Bank. This allows them to reorganize and continue operations at the same time.
Businesses mostly file for Chapter 11 bankruptcy. This category allows a business to continue to operate their business with the creditors and the court's approval of a plan to repay debts to their creditors.