Texas Bankruptcy Court Approves RNDC’s Chapter 11 Liquidation Plan

A Texas bankruptcy court approved Republic National Distributing Co.’s Chapter 11 liquidation plan on Oct. 27, moving the large wine and spirits distributor closer to completing its wind-down after months of asset sales and market exits.

The U.S. Bankruptcy Court for the Southern District of Texas approved RNDC’s second amended plan and related disclosure statement, according to the court docket. The ruling set the legal framework for the liquidation to continue, but it did not end the bankruptcy case.

The approval came one day after Columbia Distributing said it had completed its acquisition of certain RNDC beverage distribution assets in Alaska. Financial terms were not disclosed. Columbia said the deal adds about 1,500 customer accounts and expands its direct service territory to more than 835,000 square miles.

The Alaska transaction completes the final part of a letter of intent that Columbia and RNDC announced in April. Columbia said it plans to invest in the Alaska business and is working with employees, suppliers and customers on the transition. The company said it would provide additional details on its product lineup and operating schedule as the integration moves forward.

Columbia operates directly in Alaska, Oregon and Washington, and it has a strategic partnership with Hayden Beverage in Idaho. The Alaska purchase broadens a regional distribution network that already carries beer, wine, spirits and nonalcoholic beverages.

RNDC filed for Chapter 11 protection on July 26 as it sought to sell its remaining businesses and wind down operations under court supervision. At the time, the company said earlier sales had preserved more than 5,000 jobs, but that its financial condition required a formal bankruptcy process. RNDC also said it planned to keep meeting obligations under transition service agreements tied to completed sales while it pursued additional transactions and shut down remaining operations.

Not all parts of the business were included in the filing. National Distributing Co. Inc. was excluded, along with RNDC joint ventures in New York, Illinois, Ohio, Michigan, Indiana and Kentucky. RNDC’s Alaska joint venture was included in the Chapter 11 case.

The liquidation of a distributor as large as RNDC is likely to reshape customer relationships and local market coverage across parts of the U.S. beverage business. For wineries, distilleries, brewers and other suppliers that depended on RNDC routes, the shift could mean renegotiating contracts, moving brands to new wholesalers and adjusting collection and delivery arrangements. Columbia’s move in Alaska also shows how competitors can use those transactions to expand territory and deepen their product reach.

RNDC had long been one of the country’s major beverage alcohol distributors, and its bankruptcy has unfolded through a series of asset sales rather than a reorganization around a smaller operating company. The court’s approval of the liquidation plan now gives the company a formal path to continue that process, while buyers such as Columbia absorb pieces of the business and take over customer accounts in selected markets.

For suppliers and retailers in Alaska, the immediate effect is a change in ownership of distribution assets that handle part of the flow of beverage products into the state. Columbia said it is coordinating with workers, vendors and customers during the handoff, a period that will be closely watched in a market where scale, geography and reliable route coverage are critical to keeping products moving.