Dallas-based Borden Dairy Co. has filed for bankruptcy.
Borden Dairy, one of America’s oldest and largest dairy companies, announced that it has voluntarily filed for Chapter 11 bankruptcy protection.
This will be the second major milk producer to file for bankruptcy in the last two months.
"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," CEO Tony Sarsam said in a press release. "These challenges have contributed to making our current level of debt unsustainable.”
The company 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.”
According to the Dallas Business Journal, Borden employs approximately 3,300 workers around the country.
The company has about 160 workers at its Dallas headquarters and another 325 at its manufacturing facility on South Lamar Street.
Milk consumption has been on a steady decline in the past few decades.
In 1975, the average American drank 28.7 gallons of milk annually, according to the Business Journal.
In 2017, that figure slid to 17.1 gallons.
Sarsam stressed that despite filing for bankruptcy, it is “business as usual” at Borden.