Borden Dairy became the second major dairy processor to file for bankruptcy in the last three months this week as the company announced it had “initiated voluntary reorganization proceedings.”
The company says it plans to “continue operating in the ordinary course of business” during the bankruptcy process but said its current debt load had become a major business obstacle.
“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,” Borden CEO Tony Sarsam said. “These challenges have contributed to making our current level of debt unsustainable.”
Borden also created a company website to provide updates specific to the bankruptcy proceedings.
In November, Dean Foods announced a Chapter 11 filing of its own along with “advanced discussions with Dairy Farmers of America Inc. regarding a potential sale.”
Borden is headquartered in Dallas and, according to the company, “operates 13 plants and nearly 100 distribution centers in the Midwest, Southern and Southeastern regions of the U.S.”
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