DALLAS (AP/WLUC) - Dean Foods is filing for Chapter 11 bankruptcy protection and may sell the company off to the Dairy Farmers of America.
The company said Tuesday that it needs to address debt and unfunded pension obligations while it puts the company up for sale.
Dean Foods Co. has lost money in eight of its last 10 quarters and in seven of its last eight quarters it's posted declining sales.
The company has received a commitment of about $850 million in debtor-in-possession financing from certain existing lenders.
Dean Foods, which named Eric Berigause as its new CEO in July, said its business is operating normally while it reorganizes.
In August 2006, Dean Foods acquired Jilbert Dairy.
In a statement to TV6 & FOX UP, Anne Divjak, Vice President of Government Relations & External Communications for Dean Foods Company, said, "We are operating as normal and continuing to provide customers with an uninterrupted supply of high quality products. The means products from the Dean Foods family of brands, including Jilbert’s Dairy, will continue to be available across Upper Michigan where consumers usually shop. Additional information can be found at DeanFoodsRestructuring.com."
(Copyright 2019, The Associated Press)