Nov. 12 (UPI) -- Milk processor Dean Foods filed for Chapter 11 bankruptcy on Tuesday and said it's talking with the Dairy Farmers of America about a potential sale.
The Texas-based company has struggled since its largest customer, Walmart, built its own dairy plant. Shares are down nearly 80 percent this year and it was removed from the New York Stock Exchange.
Dean Foods said it intends to "use this [bankruptcy] process to protect and support" ongoing business operations and address "debt and unfunded pension obligations." It has already received $850 million in financing from lenders.
New CEO Eric Beringause said he's confident the company has the right leadership to move through bankruptcy.
"Since joining the company just over three months ago, I've taken a hard look at our challenges, as well as our opportunities and truly believe we are taking the best path forward," he said in a statement.
"We continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption."
