Borden has filed chap 11 not looking good
14 replies (most recent on top)
what plants has borden closed recently?
Post below is right. They did so to sneak out of it, even their bank mentions in an article released the other day that they didn't have to file ch 11 and only did so to back out and reorganize certain debts. Deans on the other hand didn't have a choice.
So if I'm understanding the Borden situation, Borden unlike Dean Foods filed Chapter 11 with the intent of reorganizing and not selling all of their assets. In Borden's case, they have a great deal of debt related to unfunded pension liability, just like Dean Foods. But the difference is that Borden doesn't have anywhere near the other debt that Dean Foods has. So Borden will use this process to try and get out from under the pension debt and to re-negotiate union agreements and if everything goes according to plan, they'll emerge from Chapter 11 still in operation.
Unnecessary and deliberate. PE should hang for it.
Yes of course they will get out of it, the owners and partners of KKR are about to do it again and they're riding the workers and the farmers till they are sent off to the glue factory
Who cares if Borden filed Ch 11. They will get out of it, meanwhile Deans will not. In fact, if Borden did want to sell it would look a lot more enticing to DFA as DFA owns Borden Cheese and Borden isn't as upside down as Deans.
Interesting that now that the holidays are over, the first thing we hear from corporate is Borden files CH 11. Change of scenery? What about updates as it's been quiet for awhile now.
Walmart, Kroger, Kwik Trip use private label brand milk as loss leader to draw customers to their locations to purchase other products so the net can be a positive..... For Dean Foods it was their revenue plan which obviously failed. Per the leadership meeting in Dallas in the early two thousands Dean wanted to charge more for the same product that private label offered, didn’t make sense then and doesn’t now.
In the case of Borden Dairy, they have 3,300 employees. The company says it can't afford it's debt nor it's pension obligations. Filing for bankruptcy is a way to negotiate using the courts in order not to pay those pensions.
Raising prices is part of what got us to where we are today.
For decades everyone in the fluid dairy business raised and lowered the prices they charged as the price of commodity milk went up and down. One of Ralphie's first big decisions at Dean Foods (before he was even CEO) was to not lower prices to customers when the cost Dean Foods was paying for raw milk dropped. And he didn't give our customers advanced notice. Made for 2 good quarters of profits. But that was short term. Long term customers were upset and many stopped buying from Dean Foods just as soon as they could line up other suppliers. And the ones who stayed refused to pay more when the prices that Dean Foods was paying for raw milk inevitably went up. So short term thinking on Ralphie's part because he didn't understand the business.
So can't blame the debt and selling Whitewave on Ralphie, but can blame him for running off customers with dumb pricing.
Seems like the whole dairy industry is in trouble. Why cant they raise prices like everybody else?
Tim Hawk ran Borden into the ground before they canned him. Then Dean Foods hires him back and he did the same thing...
Investor dollars...if you work at a plant that gets bought by an investment group or holding company, run as quickly as you can. Only chance for longevity at a Dean Foods plant will be if it gets bought by a company in the dairy business that already knows what they're doing and what to expect. Most Investment groups will cut bait and run as soon as they figure out what they bought.
More plants on the market competing for limited investor dollars?
What does Borden actually produce anymore? I know they license their brand to Dean Foods and DFA and others, so a whole lot of Borden products are not actually made by the Borden Company. Only way this really hurts us is if they have dairy plants in better shape then ours.
And this is the second Chapter 11 bankruptcy for Borden.