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Home / Business / Friendly & # 39; s Ice Cream Parent is suing for bankruptcy

Friendly & # 39; s Ice Cream Parent is suing for bankruptcy



Dean Foods, the nation's largest milk producer and owner of Friendly's ice cream, filed for bankruptcy Tuesday. The company acquired Friendly & # 39; s ice cream production and retail distribution business in 2016 for $ 155 million. "Despite our best efforts to make our business smoother and cost-effective, we continue to be impacted by a challenging operating environment characterized by continued declines in consumer milk consumption," said Eric Beringause, who recently joined Dean Foods as president and CEO. The Dallas company said it could sell itself to Dairy Farmers of America, a marketing cooperative owned by thousands of farmers. Dean Foods blamed his financial suffering for a decade on a dairy farm that has seen people turn to alternatives such as soft drinks, juices and almond milk. Since 1

975, the amount of liquid milk consumed per capita in the United States has fallen over 40%. Americans drank around 24 liters a year in 1996, according to government data. It fell to 17 liters in 2018. The decline has had a major effect on Dean Foods, which diverted 67% of sales from liquid milk last year, according to the annual report. The company has lost money in eight of the last ten quarters and sold declining sales in seven of the last eight. Dean said it will continue to function normally while putting the economy in order during Chapter 11 bankruptcy. Lender funding has put together around $ 850 million dollars. Friendly ice cream continues to be produced from the company's nearly 50-year-old Wilbraham facility in downtown Massachusetts. The plant employs about 200 people. Friendly's was founded in 1935 in Springfield, Massachusetts by brothers Curtis and Prestley Blake.

Dean Foods, the nation's largest milk producer and owner of Friendly & # 39; s ice cream, filed for bankruptcy Tuesday.

The company purchased Friendly & # 39; s ice cream production and retail distribution business in 2016 for $ 155 million. [19659005] "Despite our best efforts to make our business more agile and cost-effective, we continue to be impacted by a challenging operating environment characterized by continued decline in milk consumption," said Eric Beringause, who recently joined Dean Foods as president and chief executive officer.

The Dallas company said it could sell to Dairy Farmers of America, a marketing cooperative owned by thousands of farmers.

Dean Foods blamed his financial suffering on a decade-long decline in milk consumption that has seen people turn to alternatives such as soft drinks, juices and almond milk.

Since 1975, the amount of liquid milk consumed per capita has fallen to over 40%. Americans drank around 24 liters a year in 1996, according to government data. It dropped to 17 liters in 2018.

The decline has had a major effect on Dean Foods, which fetched 67% of sales from liquid milk last year, according to the annual report. The company has lost money in eight of the last ten quarters and sold declining sales in seven of the last eight.

Dean said it will continue to function normally while putting its finances in order during Chapter 11 bankruptcy. Lender financing has put together $ 850 million dollars.

Friendly's ice cream continues to be produced from the company's nearly 50-year-old Wilbraham plant in downtown Massachusetts. The plant employs about 200 people.

Friendly's was founded in 1935 in Springfield, Massachusetts by brothers Curtis and Prestley Blake.


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