If you are hanging in there and hoping things get better, that decision is just as bad as the business decisions Dean Foods has made. Dean Foods upper management is incompetent to say the least, but local management that manages these plants are far worse. Most local management is uneducated and unethical. Most local management and supervision can’t even balance their own checkbook, let alone manage a company. We lose as much money annually from local bad decisions as we do to a declining milk industry. If Dean Foods cares about you and their business, they would come into these plants and roots out the fools that have no business being in business. When they start there we as a group may have a sporting chance. If DFA shows up at your plants, make sure you try and tell them these unethical, misguided managers need to go so we as group can survive.
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Even if there is some money left by July the court will make Dean's go chapter 7. It will be 8 months by then which is plenty of time for any buyer to make a offer. Any money leftover will be used to shut down the plants pending sales.
Dean Foods became the behemoth that we became through acquisitions. For a time most plants were still run in the same way as they were being run before they were purchased. Day-to-day operational decisions were all made at the local level and we were profitable. There were some issues with plants competing with other plants for business and in some areas we had trucks delivering to customers from 3 or 4 different plants. So upper management decided that we needed to act like one company instead of dozens of companies competing with each other. Not a bad idea in theory, but the way it was implemented couldn't have been worse. Customers in different regions have different expectations. And taking away day-to-day decisions from the plant level management led to most of the really good managers leaving and bad decisions being mandated company-wide instead of just at just one or two plants.
So yes, much of the local management is now incompetent, but that wasn't always the case and blame upper management for running off most of the good local management.
I personally don’t think Dean Foods has the cash to wait out a sale. Will a sale happen, most likely. The issue at hand is the government. We all know the speed in which they work. The courts are not going to allow the debt to grow much larger. Everyone needs to see what is happening at the plants to make things better. As most of you are aware, corporate has done nothing to strengthen the bottom line at these plants. It’s the plants and distribution that make the money. If you aren’t will to streamline your process in the short term, the long term will suffer. It’s going to be a bumpy ride over the next few months, so do yourself’s a favor and save money and pay down your personal debt. Don’t be like Dean Foods, be smart.
When do you think the chap 7 gonna happen
Yes dean filed the earnings and current liabilities for the past 2 years for each plant .guess they are establishing market value for potential buyers to start the bidding.if we don't sell by July as final order states we are done if there is no DIP money left#chapter7
This is interesting, I am not versed in this enough to draw a conclusion.
Ya management told us they were going it alone without a sale and you can see how that turned out.
Yes, visit the equip site and see the proof yourself. Everything indicates and is preparation for Ch. 7. On Friday, while the CEO was feeding everyone the Kool Aide, the Lawyers were filing many papers in court which show a complete contradiction as to what he was trying to tell the lemmings.
Did you hear that chapter 7 was happening from someplace?
The opposite seems to be indicated with the bonds trading higher in the last few weeks.
Well since I believe we are going into Chap 7 everybody that's left will be out of work. Then the buyers will step in and take over with a clean slate.