Pitchfork broke this story this morning:
"Jonah Flicker and Will Bryant report: In a Pitchfork exclusive, Unwound are calling it quits after more than ten years of turning out record after quality record with essentially the same personnel. Unwound took the conventions of punk rock and twisted them through improvisation and innovative instrumentation, creating their own brand of emotional and intense rock and roll. They fully embodied the ethos of DIY, building their own studio and releasing records on their own and with friends. Sources close to the band are already looking forward: "I am releasing a solo seven-inch by Vern and plan to do one for Justin in the future, but that was planned before the breakup," Troubleman Unlimited's Mike Simonetti told Pitchfork. "No other gossip… I think they're just ready to stop." The Rumsey seven-inch is due on Troubleman Unlimited in May."
The band has four final shows planned, and I highly recommend you make the trek if at all humanly possible.