Republic National Distributing Company has told employees it expects to permanently close its facilities in Illinois, citing an inability to secure financing to keep those operations running.
"RNDC is currently contemplating changes to its Illinois operations in light of the fact that there currently is no financing available to continue RNDC's Illinois operations," the company said in a statement. "RNDC currently expects to permanently close its Illinois facilities, which will impact individuals employed at or reporting to our Illinois facilities."
The company did not say how many workers would be affected. It added that day-to-day operations have not yet changed and that the company remains focused on serving customers and meeting its market commitments for now.
The Illinois situation is part of a broader restructuring that has been playing out across multiple states. In April, RNDC said it was working with joint venture partners in New York, Illinois, Kentucky, Indiana, and Michigan to find the best paths forward for its operations in those states.
In Michigan, the company said it may be nearing a deal. RNDC confirmed it has issued conditional WARN notices to Michigan staff, a legal requirement ahead of potential mass layoffs or facility closures. "The notice is being provided in accordance with applicable legal requirements and does not indicate that any transaction has been completed," the company said. It added that no final employment decisions have been made and that discussions remain ongoing.
Several pieces of the company have already been sold off or transferred. Earlier this month, RNDC agreed to sell its Arkansas operations to local firm Moon Distributors. Last month, Breakthru Beverage Group signed a letter of intent to buy RNDC's interests in Kentucky and its Indiana joint venture with National Wine and Spirits. Quality Brands Distributing has also reached a preliminary agreement on a potential deal for RNDC's operations in Nebraska, South Dakota, and North Dakota.
Earlier this year, RNDC sold operations spanning ten states and Washington, D.C. to Reyes Beverage Group.
The company said it cannot comment further on potential outcomes in Michigan or other states while discussions remain ongoing.
