Borden Dairy, most-known for it’s smiling mascot Elsie the Cow, has filed for bankruptcy protection after over 150 years in business.
The filing makes Borden the second major U.S. dairy company to seek help as milk prices rise and more people turn to alternative milk options.
The Dallas-based company filed for Chapter 11 Bankruptcy in the District of Delaware on Jan. 5 after reporting losses of $42.4 million in 2019. Through the filing the company plans to financially restructure to reduce its current loan debts, which are listed between $100 million and $500 million to over 5,000 creditors.
“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,” said Borden CEO Tony Sarsam in a press release. “This reorganization will strengthen our position for future prosperity.”
In November, Dean Foods, one of Borden’s biggest competitors, also filed for Chapter 11 Bankruptcy protection. Dean Foods planned on selling itself rather than reorganizing finances like Borden.
Milk consumption in the United States has drastically plummeted by 40% since 1975 according to Statista. Not only have alternative milk options grown in popularity, but more and more dairy farms are going out of business ultimately causing a raise in the price of raw milk.
Borden stressed in the press release that the bankruptcy filing is “business as usual” and they are optimistic about their future success. “We have a very tenured workforce of 3,300 people who live and breathe our values of teamwork and creative problem solving, and I am extremely confident and optimistic about our continued success in the future,” said Sarsam.