Why This Matters to Distributors: RNDC’s liquidation is shifting distribution assets and customer relationships to competitors. Columbia’s Alaska acquisition shows how buyers can use those transactions to expand regional coverage and product offerings.
Republic National Distributing Co. won court approval of its Chapter 11 liquidation plan Oct. 27, advancing the wine and spirits distributor’s wind-down following months of asset sales and market withdrawals.
The U.S. Bankruptcy Court for the Southern District of Texas approved RNDC’s second amended plan and related disclosure statement, according to the case docket. The approval establishes a framework for completing the liquidation but does not close the bankruptcy case.
The ruling followed Columbia Distributing’s Oct. 26 announcement that it had completed its acquisition of certain RNDC beverage distribution assets in Alaska. Financial terms were not disclosed.
The acquisition adds 1,500 customer accounts and expands Columbia’s direct service territory to more than 835,000 square miles. Columbia operates directly in Alaska, Oregon and Washington and has a strategic partnership with Hayden Beverage in Idaho.
Columbia said it plans to invest in the Alaska business and is working with employees, suppliers, and customers on the transition. The company will provide affected parties with additional information about its product portfolio and operating schedule.
The transaction completes the final component of a letter of intent Columbia and RNDC announced in April. It expands Columbia’s regional distribution network, which carries beer, wine, spirits, and nonalcoholic beverages.
RNDC filed for Chapter 11 protection July 26 to pursue sales of its remaining businesses and wind down operations. The company said earlier sales had preserved more than 5,000 jobs, but its financial position required a court-supervised process.
National Distributing Co. Inc. was excluded from the filing, along with RNDC’s joint ventures in New York, Illinois, Ohio, Michigan, Indiana, and Kentucky. RNDC’s Alaska joint venture was included.
At the time of its filing, RNDC said it intended to fulfill obligations under transition service agreements tied to completed sales while pursuing additional transactions and winding down remaining operations.
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