180531146770916.jpg

Watertown Daily Times

Borden Dairy Co. is the second major dairy producer to file bankruptcy in recent months citing an increasingly challenging industry for producers and “unsustainable” debt.

The privately-owned Dallas-based dairy company announced Monday 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 said 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 million to $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. The company employs 3,300 people.

Another Dallas-based dairy producer, Dean Foods, also filed for bankruptcy two months ago and has been in “advanced discussions” to sell the company. The company had been in decline for several years and stated in its filings that the decline in milk consumption had accelerated, losing 4% year over year.

“Borden is EBITDA-positive and growing, but we must achieve a more viable capital structure,” Sarsam said in a statement.

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.

Tribune Wire

Recommended for you

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.