USA: Dean Foods files for bankruptcy

Dean Foods, the troubled US dairy firm, has announced it has filed for bankruptcy protection amid financial difficulties.

The firm, which is the US’s leading milk processor, said it and most of its subsidiaries had initiated voluntary Chapter 11 reorganization proceedings, adding that it intended to use the process to support its ongoing business operations and address debt and unfunded pension obligations while it works toward an “orderly and efficient” sale.

Dean Foods additionally said it was in advanced discussions with Dairy Farmers of America regarding a potential sale of substantially all of its assets.

Commenting on the move, Dean Foods president and CEO Eric Beringause said: “The actions we are announcing today are designed to enable us to continue serving our customers and operating as normal as we work toward the sale of our business. We have a strong operational footprint and distribution network, a robust portfolio of leading national brands and extensive private label capabilities, all supported by approximately 15,000 dedicated employees around the country”.

“Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption”, he added.

Source: Dean Foods