Jan. 6 (UPI) -- Bordon Dairy, the milk company that made Elsie the Cow famous, announced Sunday it is filing for bankruptcy, saying new competition, fewer milk drinkers and shrinking profits have made its debt load "unsustainable."
The Dallas-based Borden said it has filed for Chapter 11 bankruptcy in Delaware after seeing profits dwindle in competition with soy, rice and nut alternatives.
"The company intends to use the court process to pursue a financial restructuring designed to reduce its current debt load, maximize value and position the company for long-term success," the company said in a statement.
"Borden plans to continue operating in the ordinary course of business, under the court's supervision and remains focused on being the most service-oriented dairy company that offers delicious and nutritious products consumers love," the statement continued.
Through Dec. 7, Borden had reported a $42.4 million net loss as it also faced the rising cost of raw milk. Borden's biggest competitor, Dean Foods Co., filed for bankruptcy protection on Nov. 12.
"Despite our numerous achievements during the past 18 months, the company continues to be impacted by the rising cost of raw milk and market challenges facing the dairy industry," Borden chief executive Tony Sarsam said.
"These challenges have contributed to making our current level of debt unsustainable. For the last few months, we have engaged in discussions with our lenders to evaluate a range of potential strategic plans for the company. Ultimately, we determined that the best way to protect the company, for the benefit of all stakeholders, is to reorganize through this court-supervised process."
Borden has been around since 1857 and producers more than 35 products.