Borden Diary Co. filing for bankruptcy due to debt load.
The Borden Diary Co. has filed for the bankruptcy and has become the second significant United States milk seller to do that in as many months as there has been a decline in the consumption and fall in profits due to the competitive pressures and the falling profits have made their debt load not sustainable.
They are known for their mascot which is a cow named Elsie, the company based in Dallas has the liabilities and assets between $100 million as well as $500 million in the filing of Chapter 11 in Delaware. The company had been founded over 160 years ago has said that the operations are going to begin in a normal manner once a recovery plan has been chalked out.
The alternatives such as rice, soy as well as nut milk have been booming in addition to the prices rising of raw milk have been making it difficult for Borden as per their CFO Jason Monaco in the papers which they have filed. The additional pressures have come from the retailers to invest in their own dairy products which cost less.
Monaco has said that although milk is still an item used in households in United States, there is a lot less consumption which is happening. The number of dairy farms in the United States has also been seeing a rapid decline.
The costs being higher have been chocking the supply up with the prices of the raw milk being up by 27% after the month of January in the year 2019 and is projected to rise even more even with the prices of retails and margins seeing a drop as per court papers.