The wine industry has faced a significant decline since the Covid-19 pandemic that has led several wineries to file for bankruptcy protection to avoid foreclosure sales and other litigation, as well as potential closures.
A major economic issue the wine sector faced was a 21% decline in industry revenue from 2020 through 2025, according to Silicon Valley Bank’s State of the U.S. Wine Industry Report.
Napa Valley winery Signorello Estate LP, facing financial distress, filed for Chapter 11 bankruptcy protection on Aug. 27 to halt a foreclosure sale and prepare the debtor for a going-concern sale to stalking-horse investors, according to court documents.
A bankruptcy filing imposes an automatic stay against legal actions against a debtor, but in certain cases a bankruptcy can be filed long after a business has already closed.
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Moon Dancer Winery forced to close
Pennsylvania winery owner Moon Dancer Vineyards & Winery Inc. filed for Chapter 11 bankruptcy protection on Sept. 11, 2026, to reorganize its business and restructure its debts about 10 months after being forced to close its facilities.
The debtor owns Moon Dancer Winery, which permanently closed its winery and tasting room on Nov. 19, 2025, after the Pennsylvania Supreme Court denied the owner’s final appeal to continue operating its business, according to a statement the winery posted on Instagram.
The Wrightsville, Pa., winery and vineyard filed its petition in the U.S. Bankruptcy Court for the Middle District of Pennsylvania, listing $100,000 to $500,000 in assets and $1 million to $10 million in debts.
Moon Dancer Winery’s largest unsecured creditors include M&T Bank, owed over $757,000; U.S. Small Business Administration, owed over $500,000; McNeese Wallace & Nurick LLC, owed $450,000; and First Data – Clover Capital, owed $30,000.
The winery opened in 2003 and operated for 13 years before Matthew S. Balsavage and Amenda Perko purchased an adjacent residential property in 2016, according to court papers. The winery has 10 acres of vineyards and replanted 2,400 vines in spring 2025, with Cabernet Franc and Chardonnay as two of its primary grapes.
Neighbors file lawsuit against winery
Balsavage and Perko filed a lawsuit in the Court of Common Pleas of York County in Pennsylvania against the winery on Oct. 22, 2018, alleging that the winery’s operations, including a tasting room, a pizzeria restaurant, wedding venue, and music festival site, were prohibited by language in the property’s deeds.
Moon Dancer Winery claimed in court papers that it was an allowed agricultural operation, while the plaintiffs asserted that it was a prohibited commercial operation.
Supreme Court rules against Moon Dancer
The winery continued operating while it appealed its case to the Pennsylvania Supreme Court, but permanently closed the winery the day after the court denied the appeal on Nov. 18, 2025.
“While we are saddened by the state Supreme Court’s decision today, we remain forever grateful for the thousands of friends and loyal customers who have continued to stand by us in this fight, and the countless wonderful memories we have made over these last 22 years,” Moon Dancer Winery’s owner Jim Miller said in a statement.
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