First Citizens Sues Sonoma Winery Over $17.5M Debt

First Citizens Bank & Trust Co. filed a lawsuit in Napa County Superior Court on Nov. 4 against Ehren Jordan Wine Cellars and winemaker David Ehren Jordan. The bank seeks to recover at least $17.5 million in unpaid principal and interest. The complaint states that interest is accruing at a rate exceeding $2,500 per day.

The lender requests court authorization to foreclose on five properties owned by Jordan in Napa and Sonoma counties. First Citizens acquired the loan through its purchase of Silicon Valley Bank. The bank declined to comment on the filing. Jordan also did not respond to requests for comment.

According to the legal documents, Jordan and his company signed the original loan agreement with Silicon Valley Bank in April 2022. The bank alleges the winery has repeatedly failed to meet the terms of that agreement. Extensions and amendments were granted to the borrower. One amendment required the winery to secure an investor or buyer who would contribute at least $8 million toward the debt by April 30. The bank claims the winery missed that deadline.

Ehren Jordan Wine Cellars operates the Failla Wines label. The brand was founded in 1998 as Failla Jordan. It was named after David Ehren Jordan and his wife, Anne-Marie Failla. The label has received industry awards for its production.

The legal action occurs as California’s wine industry faces a sharp drop in demand. The Wine Institute reports that California wine exports to Canada fell by 78% in 2025. This decline represents a loss of $357 million in export value. While the rate of decline has stabilized, total export figures have not returned to previous levels.

The International Organisation of Vine and Wine states that U.S. wine consumption dropped by 4.3% last year. The trade body cites a wider variety of alcoholic beverage options and lower consumption rates among younger demographics as factors.

Industry data from First Citizens Bank shows a long-term trend of declining sales. U.S. wine case sales decreased by 23% from 2020 to 2025. Sales volume fell from 427 million cases to 329 million cases. Total spending in the sector dropped from $94 billion to $74 billion over that same period.

Other wineries in the state are facing similar financial pressures. Gundlach Bundschu, the oldest family-run winery in California, filed for bankruptcy protection in September. The Sonoma County winery, founded in 1858, stated it could not reach a debt restructuring agreement with lenders. Signorello Estate in Napa Valley and Robledo Family Winery in Sonoma also filed for Chapter 11 protection this year.

Passaggio Wines, a Sonoma County business with a two-decade history, ceased operations in October. The company cited declining sales as the reason for closing. Larger producers are also cutting costs. Gallo, a family-run winery, announced plans to lay off more than 90 employees by the end of January 2027. Gallo will also close a winemaking facility in Napa Valley. Constellation Brands announced in February that it would lay off 212 workers at its Mission Bell Winery in Madera. The company, which owns Robert Mondavi wines and Modelo and Corona beers, is shifting resources toward its beer division.