DALLAS — Borden Dairy Co. has filed for Chapter 11 bankruptcy. The company said it is using the court process to “pursue financial restructuring designed to continue operating in the normal course of business.” The filing comes on the heels of Dean Foods Co., the nation’s largest dairy processor, filing Chapter 11 bankruptcy this past November.
“Borden is EBITDA-positive and growing, but we must achieve a more viable capital structure,” said Tony Sarsam, chief executive officer.
Borden is a manufacturer of a full range of dairy products, including fluid milks, sour cream, creams and dips. The company operates 13 manufacturing plants and employs 3,300.
In 2017, the business was bought by ACON Investments, L.L.C., Washington. In 2013, Borden was spun-off from a multinational business into a private company called Laguna Dairy, S.A. de C.V.
“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,” Mr. Sarsam said. “These challenges have contributed to making our current level of debt unsustainable. For the last few months, we have engaged in discussions with our lenders to evaluate a range of potential strategic plans for the company. Ultimately, we determined that the best way to protect the company, for the benefit of all stakeholders, is to reorganize through this court-supervised process.”