Dairy producer Borden Dairy files for bankruptcy
Borden said Sunday he filed for bankruptcy due to the rising cost of raw milk and competition from other products. Photo by Scott Bauer/Agricultural Research Service
January 6 (UPI) — Bordon Dairy, the dairy company that made Elsie the Cow famous, announced on Sunday it was filing for bankruptcy, saying new competition, falling milk drinker numbers and falling profits had made its debt load ‘unsustainable’ .
Borden, based in Dallas, said he filed a request Chapter 11 Bankruptcy in Delaware after seeing its profits shrink in the face of competition from alternatives to soy, rice and nuts.
“The company intends to use the legal process to pursue a financial restructuring aimed at reducing its current indebtedness, maximizing value and positioning the business for long-term success,” the company said. in a report.
“Borden plans to continue operating in the normal course of business, under court supervision, and remains focused on being the most service-oriented dairy company that delivers delicious, nutritious products that consumers love.” , continues the press release.
Through Dec. 7, Borden had reported a net loss of $42.4 million as it also faced rising raw milk costs. Borden’s biggest competitor, Dean Foods Co., filed for bankruptcy Nov. 12.
“Despite our many accomplishments over the past 18 months, the business continues to be impacted by the rising cost of raw milk and market challenges facing the dairy industry,” said Borden’s Managing Director, Tony Sarsam.
“These challenges have contributed to making our current level of debt unsustainable. Over the past several months, we have engaged in discussions with our lenders to assess a range of potential strategic plans for the business. Ultimately, we determined that the best way to protect the company, in the interests of all stakeholders, is to reorganize itself through this court-supervised process.”
Borden has been around since 1857 and manufactures over 35 products.