January 6, 2020
Dallas-based Borden Dairy Co. is the second major milk producer to file for bankruptcy within the last two months. The company’s actions followed those of Dean Foods, also headquartered in Dallas, in turning to the courts for debt relief.
Borden indicated it filed for Chapter 11 bankruptcy because of a large debt load and pension obligations. The company employs 3,300, 22% of whom are covered by a collective bargaining agreement. The company indicated it has also been hurt by broader industry trends, including a 6% drop in overall U.S. milk consumption since 2015.
“Despite our numerous achievements during the past 18 months, the Company continues to be impacted by the rising cost of raw milk and market challenges facing the dairy industry,” said CEO Tony Sarsam. “These challenges have contributed to making our current level of debt unsustainable.” He also indicated that business would proceed as usual.
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