This action follows the closing of Golden Guernsey’s facility on 5 January.
OpenGate Capital acquired Golden Guernsey in September 2011 from Dean Foods after the US Department of Justice required Dean Foods to sell the business in order to resolve antitrust concerns that Dean Foods’ share of the school milk supply business was too large.
When OpenGate Capital acquired Golden Guernsey the acquisition terms included an exclusive and fixed-price milk supply agreement, and the assumption of a legacy union contract.
Since being acquired by OpenGate Capital, Golden Guernsey made vigorous efforts to reduce its expenses through discussions with its various suppliers, vendors, and the labour 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.
Source: OpenGate Capital
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