Venerable dairy giant Borden files for bankruptcy
Borden Dairy Co., one of the oldest and largest milk producers in the United States, filed for Chapter 11 bankruptcy on Monday, citing a dropping demand for cow's milk, rising costs for raw milk, and its own debt and pension obligations. The nation's largest milk producer, Dean Foods, filed for bankruptcy protection in November. Both companies are based in Dallas.
Borden traces its roots back to 1857, when Gail Borden developed the first successful method of making commercially viable condensed milk and incorporated in upstate New York a few years later to churn out canned milk for the Union Army, CNN reports. The company changed its name to Borden Dairy Co. in 1919 and introduced its iconic mascot, Elsie the Cow, in 1936. Borden said it plans to continue operations during the bankruptcy process but did not say if its endgame is liquidation or continuing as a dairy business. The company employs about 3,300 people.
In its filing, Borden noted that 2,700 U.S. family dairy farms went out of business last year, and 94,000 have ceased milk production since 1992.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Indie film's 'very brief' use of AI sparks backlash and calls for boycotts
Talking Points Did the creators of a new horror movie make a deal with the artificial intelligence devil?
By Rafi Schwartz, The Week US Published
-
Could Taylor Swift swing the election?
Today's Big Question The pop star has outsized influence — and that extends beyond the music industry
By Anya Jaremko-Greenwold Published
-
Kevin Hart awarded Mark Twain Prize
Speed Read He is the 25th recipient of the prestigious comedy prize
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published
-
Immigration helped the US economy outpace peers
speed read The U.S. economy grew at an annualized rate of 3.2% last quarter
By Peter Weber, The Week US Published
-
4-day workweek gets boost from UK study
Speed Read Following a six-month trial, the majority of participating British companies are still using the truncated schedule
By Peter Weber, The Week US Published
-
US sues to block Kroger-Albertsons merger
Speed Read The Federal Trade Commission sued to block the $24.6 billion merger between the grocery giants
By Peter Weber, The Week US Published
-
Nvidia sees historic stock rise on AI chips success
Speed Read U.S. chipmaker Nvidia achieved the biggest one-day increase in value of any company in history
By Peter Weber, The Week US Published
-
New York may seize Trump's assets for $450M penalty
Speed Read The former president likely owes $600 million from two civil judgments in New York
By Peter Weber, The Week US Published