Jan 9 Private equity-backed milk processor
Golden Guernsey Dairy LLC filed for bankruptcy and said will
liquidate after it failed to cut operating costs.
The company, backed by Los Angeles-based firm OpenGate
Capital LLC, filed for Chapter 7 bankruptcy protection on
Tuesday in a U.S. bankruptcy court in the district of Delaware.
OpenGate bought Wisconsin-based Guernsey Dairy from Dean
Foods Co in September 2011 to resolve anti-trust concerns
about Dean Foods' large share of school milk supplies in the
The private equity firm said it increased sales by 20
percent after it bought Golden Guernsey from Dean Foods but was
unable to reduce costs in a meaningful manner, given some of its
Golden Guernsey, an 83-year-old company, supplies milk and
milk products to schools, grocery stores and retailers in
Wisconsin, Illinois, Minnesota and Iowa.
The company's only facility, which employs over 100 people,
shut abruptly on Saturday.
"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," OpenGate
Capital Chief Executive Andrew Nikou said.
The company listed assets and liabilities of between $10
million and $50 million in its bankruptcy petition.
The case is In re: Golden Guernsey Dairy LLC, U.S.
Bankruptcy Court, District of Delaware, No:13-10044.