A longtime Sonoma winery could be forced to shutter to pay millions in overdue debt, potentially becoming the latest casualty in California wine country.

Ehren Jordan Wine Cellars' lender, First Citizens Bank & Trust Co., sued the winery in Napa County Superior Court.

First Citizens Bank & Trust filed the lawsuit on Nov. 4 against winemaker David Ehren Jordan and his company, Ehren Jordan Wine Cellars. The bank, which took over the loan through its acquisition of Silicon Valley Bank, said the defendants owed at least $17.5 million in unpaid principal and interest, with interest accruing at more than $2,500 per day.

According to the complaint, Jordan and the winery entered into the loan agreement with Silicon Valley Bank in April 2022 and have repeatedly failed to meet the loan terms, even after extensions.

Amendments gave the winery until April 30 to find an investor or buyer to put up at least $8 million toward the debt. The bank alleges the winery failed to do that.

First Citizens declined a request for comment.

Ehren Jordan Wine Cellars is the company behind Failla Wines, an award-winning label. Founded as Failla Jordan in 1998, the label was named for winemaker David Ehren Jordan and his wife, Anne-Marie Failla.

The bank asked the court to authorize foreclosure of five of Jordan's properties in Napa and Sonoma. Jordan did not respond to a request for comment.

From trade disruptions to falling demand, California wineries are facing a tough market.

According to the Wine Institute, an advocacy group that represents California wineries, California wine exports to Canada fell 78% in 2025, a $357-million loss in export value. Although the steep decline has stabilized, the total export numbers have not completely recovered yet.

The International Organisation of Vine and Wine, an industry trade body, said U.S. consumption fell 4.3% last year partly because of a wider selection of alcoholic beverages, plus a reduction in consumption among younger people.

Wine sales surged during the COVID-19 pandemic but have since declined. U.S. wine case sales dropped 23% from 427 million in 2020 to 329 million in 2025, and total spending fell from $94 billion to $74 billion, according to an industry report by First Citizens Bank.

A lot of California wineries have been grappling with financial difficulties.

In September, California's oldest family-run winery, Gundlach Bundschu, filed for bankruptcy protection. Founded in Sonoma County in 1858, the winery said it could not reach an agreement with lenders to restructure its debt. Signorello Estate in Napa Valley and Robledo Family Winery in Sonoma also filed for Chapter 11 this year.

Other wineries in the region have also had to drastically restructure or upend their operations.

In October, Sonoma County-based Passaggio Wines was forced to end operations as a result of declining sales after two decades in the wine business.

Earlier this year, family winery Gallo announced it would lay off more than 90 employees by the end of January 2027 and close a Napa Valley winemaking facility.

Constellation Brands announced in February that it would lay off 212 workers at its Mission Bell Winery in Madera. The publicly traded company, which owns Robert Mondavi wines and Modelo and Corona beers, is shifting its attention toward its expanding beer business.

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