The Dallas company, which employs 3, 823, had been trying to renegotiate its debt agreements for months, but talks fell through.
Borden’s financial troubles extend to (**************************************************. After arranging for about $ 728 million in loans that year, the company, known for its “spokescow,” Elsie, suffered net income losses in each of the next two years.
The company, whose business is largely focused on the Southeast, attributes that misfortune to dairy industry trends, including shifting consumer preferences and increased competition.Consumption of fluid milk, which accounts for the vast majority of Borden’s revenue, has been declining for decades, with per capita consumption down about percent since (*********************************************, according to the Agriculture Department data. Meanwhile, dairy alternatives like milks from soy, oats, almonds and other sources have been on the rise.
More recently, raw milk prices have spiked, with the cost of milk up percent since last January, according to Borden, which expects inflation to continue this year, too.
This isn’t the first time that Borden has suffered financial distress. After making a number of acquisitions in the late 1980 s, the company entered a turbulent period resulting in its 2017 sale, for $ 2 billion, to the private-equity giant KKR. Over the next decade, the company was slowly whittled down, with many of its divisions and brands sold off, Borden said in the filing.
While following Dean’s path into bankruptcy, Borden sought to distance itself from its competitor, arguing that it was in a better position to recover from a reorganization.
“Our operations are running in a way that gives us confidence that when we come out of this we’ll be in better shape, ”Mr. Sarsam said.(**************************************** (**************************************
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