California Investors File Bankruptcy for Golden Guernsey

Expenses for Waukesha dairy, which shut down without warning on Saturday, exceeded revenues, according to OpenGate Capital.

OpenGate Capital has declared bankruptcy for the Golden Guernsey plant in Waukesha, which led to the plant’s shutdown on Saturday, the company said Tuesday.

More than 100 employees were left without answers when the plant shut down. One employee, Robert Storm, has filed a complaint with the Wisconsin Department of Workforce Development because the employees did not receive 60 days notice before they lost their jobs.

Online federal records did not yet have a bankruptcy notice posted late Tuesday.

The company started in 1930 as a farmer-owned cooperative in Milwaukee, and by 1935, Golden Guernsey delivered milk to the homes of 20,000 customers in Wisconsin, according to its website. By 1955, construction began at its current facility at 2101 Delafield St.

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Dean Foods was ordered to sell the plant by the U.S. and Wisconsin Departments of Justice in order to settle an antitrust lawsuit because Dean Foods owned about 60 percent of milk processing plants in the state. an investment firm that planned to continue operations of the dairy processing facility.

Golden Guernsey increased sales by 20 percent under OpenGate Capital’s ownership but the company was unable to reduce expenses, the news release states.

“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,” OpenGate Capital CEO Andrew Nikou said in the press release. “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," Nikou added. "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.”  

Steve January 09, 2013 at 09:22 PM
When Deans left GG they took business with them GG had had prior to Deans buying them. People can try to blame obama about what happend, but its crap!!! I'm not a obama supporter by any means. I worked there. There is a lot more that went on then people and that is being reported!!!!!
Cows'r'us January 09, 2013 at 11:56 PM
If they were having financial difficulties as they claim an asked the workers for concessions and then dropped all communications in August. WHY didn't they put the dairy up for sale? And WHY did they have the property and equipment appraised weeks before the illegal closure? What about accrued vacation and personal days, what about the personal property of employees. Such as tools they need to work elsewhere, medications in their lockers and other belongings. Andrew knew from the beginning when he stated to employees, "if someone comes in with a suitcase filled with money, your gone". Showed his true intent. See what California Cows do to Wisconsin!
Haley Elizabeth Moran January 10, 2013 at 01:30 AM
I think it's funny that there are still Mitt Romney lovers saying this was Obama's fault. Here's how it works, kiddies. A good businessman knows that high production value conquests arise out of purchasing a business that's in jeopardy at low cost.... Maximizing profitability for a period and scrapping it when it's no longer sustainable. You put as little into it as possible and pull as much out while you can. It's the same thing Romney and scores of other capitalists do as common practice. It's kind of like purchasing an automobile and then running it without maintenance for as long as it'll tick and then scrapping it for parts. If you don't care about the automobile. you're not going to waste money to fix it. Besides, it'd be cheaper just to buy another car and do the same thing to it. SO, TADA it has nothing to deal with Obama and instead it totally has to deal with maximizing the profit of a low cost investment.
Haley Elizabeth Moran January 10, 2013 at 01:38 AM
"Dean Foods was ordered to sell the plant by the U.S. and Wisconsin Departments of Justice in order to settle an antitrust lawsuit because Dean Foods owned about 60 percent of milk processing plants in the state." - Waukesha Patch (THIS ARTICLE) That's why they were forced to sell the plant. Again, it has nothing to do with Obama. Neither does the new owner running Golden Gurnsey into the ground. You just have the idea to blame SOMEONE and so you blame our president?.... But when our previous President used inside connections to put Halliburton in charge over seas it wasn't his fault. It's easy to avoid blame when defending your candidate and easy to place blame when attacking your opponents.
John Smith January 10, 2013 at 01:06 PM
It is Obama's fault. He is doing nothing to fix our situation. Redistribution of wealth doesn't work. Whoever said " I want to work for a poor man?" Its only a matter of time before he has us all jobless and you will be wondering what happened. Stay informed and think about it. Profit is not a dirty word.


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