Golden Guernsey, the 83-year-old dairy processor that closed abruptly in southeastern Wisconsin and left area schools scrambling for milk, has filed for bankruptcy. Days after closing its plant in Waukesha, Wisconsin, OpenGate Capital – which is based in California – reported filing for bankruptcy protection.
State officials say OpenGate did not provide the 60-day notice that Wisconsin law requires when employers of more than 50 workers plan to lay off a substantial number of them. Dozens of workers at Golden Guernsey learned on Jan. 5 that their jobs were immediately eliminated and the work there, ceasing.A statement OpenGate provided to WUWM reads in part:
Since being acquired by OpenGate Capital, Golden Guernsey made vigorous efforts to reduce its expenses through discussions with its various suppliers, vendors, and the labor union. The prospect of closing the plant and the potential for bankruptcy was raised on several occasions with these groups, all of which were provided with a clear picture of Golden Guernsey’s fragile financial condition. Despite this, Golden Guernsey’s efforts were rejected, leading to the closure of the business.
According to CEO Andrew Nikou:
"We have to make realistic decisions about our investments, and the reality is that the Golden Guernsey business was unable to achieve financial autonomy given the pressure to lower prices and seemingly non-negotiable operating expenses.
"This was a very difficult decision given the loss of jobs and disruption to milk delivery service, yet it had to be made.
"The closure of the plant is not a reflection of the hard work contributed by the Golden Guernsey family of employees. Unfortunately, when expenses overwhelm revenue for too long, and we are unable to achieve cooperation from the people with whom we do business, the business cannot be sustained.”
Milk from the shuttered plant in Waukesha will be distributed to the needy throughout the state.
The products were donated to Milwaukee-based Hunger Task Force. Spokeswoman Dana Hartenstein said on Jan. 15 that they are still trying to determine exactly how much milk and other products like cottage cheese and yogurt is still fresh, but there will be enough for outside the Milwaukee area.
Officials hope to get help from trucking companies for deliveries in Madison, Eau Claire, La Crosse and Green Bay. PD
—From WUWM News and the Appleton Post-Crescent
