Day: January 6, 2020

Borden Dairy Co., which was founded in 1857, announced that it has filed for Chapter 11 bankruptcy protection in the District of Delaware. This comes not long after Dean Foods announced it was filing for bankruptcy in November.

Borden intends to use the court process to pursue a financial restructuring designed to reduce its current debt load, maximize value, and position the company for long-term success. Borden plans to continue operating in the ordinary course of business, under the court’s supervision, and remains focused on being the most service-oriented dairy company that offers delicious and nutritious products consumers love.

“Borden is EBITDA-positive and growing, but we must achieve a more viable capital structure,” said Borden CEO Tony Sarsam. “This reorganization will strengthen our position for future prosperity. Over the past 163 years, we have earned the distinction of being one of the most well-recognized and reputable national brands. We remain committed to ‘The Borden Difference,’ which is our promise to be the most service-oriented dairy company that puts people first. We will continue serving our customers, employees, and other stakeholders and operating business as usual throughout this process.”

Sarsam explained the rising costs of raw milk and market challenges led to the decision to file for bankruptcy. “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.”