Borden Dairy Company is the second major dairy producer to file bankruptcy in recent months, citing an increasingly challenging industry for producers and “unsustainable” debt, The Dallas Morning News reports.
The privately owned Dallas-based dairy company announced today it would initiate bankruptcy proceedings, but that it would continue operating the business as usual throughout the process.
Borden plans to use the restructuring to reduce its current debt, which it says has become “unsustainable,” and maximize the value of the company long term, according to a release from the company.
Borden’s assets and debt both fall within the $100-$500 million range, the company detailed in a filing.
Borden was founded in 1857 and was the first milk company to use glass milk bottles. Today, the company distributes nearly 500 million gallons of milk every year. The producer operates 12 milk processing plants and nearly 100 branches across the country, and it employs 3,300 people.
Another Dallas-based dairy producer, Dean Foods, filed for bankruptcy two months ago and has been in “advanced discussions” to sell the company.
Milk consumption in the U.S. has been declining since the 1970s as consumers have flocked to dairy alternatives like almond milk. The cost of milk has been on the rise as well, increasing by more than $3 per unit since 2016, according to USDA data. Read the full story.
