The owner of Franklin’s Garelick Farms has filed for bankruptcy and is in advanced discussions to sell much of its assets.
Dallas-based Dean Foods Co., whose portfolio also includes other dairy companies such as DairyPure and Land O Lakes, along with Wilbraham restaurant and ice cream company Friendly’s, announced the bankruptcy filing Tuesday.
Dean Foods said its bankruptcy affected substantially all of its subsidiaries but didn’t specify which, and also said substantially all of its assets would be sold to Dairy Farmers of America if a discussed deal is completed.
Garelick Farms, which has offices and a major production facility on Route 140 in Franklin, was founded in 1931 by brothers Israel and Max Garelick. Today, the company has more than 1,600 employees.
Dean Foods bought the company in 1997 for $294 million.
Dean Foods reported a third-quarter operating loss of nearly $70 million last week, and a year-to-date loss of nearly $166 million through the end of September. In its bankruptcy announcement, the company said it received a commitment of roughly $850 million in financing from a Dutch lender, Rabobank.
Consumption of dairy milk has fallen sharply in recent decades, according to U.S. Department of Agriculture data.
Per-capita consumption peaked at 247 pounds in 1975 and ’76, and first fell below 200 pounds in 1998. By 2018, consumption was down to 146 pounds per person annually.
