California winery rebuilt after devastating fire now faces foreclosure over $37 million debt

A nearly 50-year-old California winery is fighting to avoid a rare foreclosure after years of financial setbacks. After surviving a devastating wildfire and spending more than $30 million to rebuild, the Napa Valley business could now lose its property to its lender.

$37 million debt puts winery at risk

Signorello Estate, a family-owned Napa Valley winery founded in 1977, owes about $37 million to agricultural lender American AgCredit, according to the San Francisco Chronicle. The lender initiated foreclosure proceedings earlier this year. 

The winery was scheduled to be auctioned outside the Napa County Courthouse on October 2, but the sale was postponed at the lender’s request. The new auction is scheduled for October 16.

Signorello has continued operating while its future remains uncertain.

Winery spent millions rebuilding after wildfire

The financial trouble follows a long and expensive recovery from the 2017 Atlas Fire, which destroyed the winery, hospitality space, and owner Ray Signorello’s home. 

Rebuilding took nearly seven years and ultimately cost more than $30 million — roughly twice the original estimate. The project faced permitting delays, pandemic-related disruptions, and rapidly rising construction costs. 

Financial pressure increased further as the interest rate on Signorello’s loan reportedly climbed from 4.75% in 2018 to 12.6% in 2024. 

Buyers failed to save the Napa winery

Signorello spent about a year searching for a buyer or investor but was unable to secure a deal. Longtime customers recently offered as much as $20 million to purchase the winery, but the lender rejected the offer.

California wine industry faces broader struggles

A foreclosure would be particularly unusual in Napa Valley. The Chronicle reports that the last time a bank took over a Napa winery through foreclosure was in 1992. 

Signorello’s troubles also come as California’s wine industry struggles with declining demand, rising costs, and mounting debt. 

For now, the winery remains open as it approaches the rescheduled October 16 auction. 

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