Liquidation rocks US drinks industry

Republic National Distributing Company (RNDC), one of America's largest wine and spirits wholesalers, is moving towards an orderly wind-down after reaching agreements with creditors over its Chapter 11 bankruptcy.

The company has asked a US bankruptcy court to approve its liquidation plan, following a settlement that resolves several creditor objections. However, the proposal remains contested, with the US Trustee's Office also raising objections.

The scale of the collapse is significant for the drinks industry. RNDC's bankruptcy involves hundreds of millions of dollars in claims, including major suppliers such as Pernod Ricard, Proximo Spirits, Edrington and Delicato Family Wines.

The liquidation follows falling alcohol sales, mounting debt and the loss of major suppliers. Its eventual outcome could leave wineries and spirits producers facing substantial losses, while disrupting the distribution of drinks to American retailers and restaurants.