Dean Foods —based in Dallas, Texas— filed for Chapter 11 bankruptcy protection on Tuesday, a move that will allow the company to continue to operate while addressing debt and unfunded pensions, according to a statement from the company.
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“Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption,” said Eric Beringause, the company’s president and CEO. “Importantly, we are continuing to provide customers with an uninterrupted supply of high-quality dairy products, as well as supporting our dairy suppliers and other partners.”
The company’s sales decreased 7% in the first half of the year, and profits fell 14%. Dean Foods stock has lost 80% of its value this year, according to CNN reporting on Tuesday.
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A statement released by Dean Foods on Tuesday also said that there are plans to sell the company and it has engaged in talks with the Dairy Farmers of America, a marketing cooperative owned by thousands of farmers.
Dean Foods is the nation’s largest milk processor in the United States, employs approximately 15,000 people and operates dozens of processing facilities across the country, according to the company. It is known for its brands Dairy Pure, Meadow Gold and TruMoo.