David J. Kozlowski Discusses Signorello Estate Winery Bankruptcy in Inc.

Morrison Cohen Bankruptcy, Restructuring & Governance Partner David J. Kozlowski was quoted in Inc. discussing Signorello Estate’s Chapter 11 bankruptcy filing following the Napa winery’s $37 million debt burden and years-long rebuilding effort after the Atlas Fire.

Signorello Estate, a Napa Valley winery founded in 1977, was destroyed by the Atlas Fire in 2017 and reopened in 2024 following a six-year, state-of-the-art reconstruction. The winery’s lender, American AgCredit, subsequently moved to foreclose on the property, equipment and Signorello Estate name. The foreclosure auction was postponed following the bankruptcy filing.

The filing comes amid broader challenges facing the U.S. wine industry, including declining alcohol consumption and reduced demand for grapes. According to Inc., the number of U.S. wineries declined by approximately 3% between 2025 and the beginning of 2026. As Dave and his colleagues discussed in a recent client alert, the effects of declining alcohol consumption are increasingly being felt through bankruptcy proceedings.

Dave noted the difficult timing of Signorello Estate’s financial troubles, stating, “Signorello’s timing couldn’t be worse.”

“Their completed rebuild in 2024 happened just when U.S. consumption of alcohol was hitting all-time lows,” he explained. “This financial climate meant Signorello could no longer service the repay debt, leading to the ironic result that Signorello survived the fire, but couldn’t survive its own rebuild.”

Dave also pointed to a potential positive outcome for the winery, noting that “Signorello appears poised to emerge from bankruptcy, albeit with new ownership.”

Read the full article in Inc. here.