US milk processor Golden Guernsey, once owned by Dean Foods, has gone into administration.
Owner OpenGate Capital yesterday (8 January) announced the Wisconsin-based firm had filed for Chapter 7 bankruptcy in Delaware bankruptcy court. This followed the closing of Golden Guernsey’s facility on 5 January.
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OpenGate acquired Golden Guernsey from Dean Foods in September last year after the US Department of Justice required the firm to sell the business in order to resolve antitrust concerns that its share of the school milk supply business was too large.
Since taking ownership, OpenGate Capital said it had made “vigorous efforts” to reduce its expenses through discussions with its various suppliers, vendors, and the labour union.
“We have to make realistic decisions about our investments, and the reality is that the Golden Guernsey business was unable to achieve financial autonomy given the pressure to lower prices and seemingly non-negotiable operating expenses,” said OpenGate CEO Andrew Nikou. “This was a very difficult decision given the loss of jobs and disruption to milk delivery service, yet it had to be made.”
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