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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. The plant was sold in September 2011 to OpenGate Capital, 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.”  

Related Topics: Golden Guernsey, OpenGate Capital, and Waukesha Business

JOHN K

9:30 pm on Tuesday, January 8, 2013

They bought it . Sucked the money out of it and then bankrupt it. There should be laws against this. just like Bains capital.

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Greg

10:45 pm on Tuesday, January 8, 2013

I did not see in the article where "Bains capital" owned or operated this plant.

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Mike Fischer

7:40 am on Wednesday, January 9, 2013

Greg, I don't see anybody saying that Bain did this.

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Nuitari

8:20 am on Wednesday, January 9, 2013

It's called capitalism, deal with it or move to Europe.

Nicole Ibealright Damico

9:34 pm on Tuesday, January 8, 2013

it still doesn't make sense that the employees weren't given notice. how were they not able to know 60days ago that they were filing bankruptcy so they could inform employees!?!

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Nicole Ibealright Damico

9:35 pm on Tuesday, January 8, 2013

Nikou is a joke the way he explains it....so casually and as if it was expected

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bnmgdm

10:51 pm on Tuesday, January 8, 2013

So dean's owned it, had to sell it, and now gets all the business back

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Steve ®

11:34 pm on Tuesday, January 8, 2013

Good job Obama, obama voters, holder and hollen. Your anti business witch hunt should put you all in jail.

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Mike Fischer

7:43 am on Wednesday, January 9, 2013

What the hell are you talking about? We have virtually no information about what is going on here, beyond some vague statements from management about operating expenses. I think you're projecting your personal biases onto this story.

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Nuitari

8:23 am on Wednesday, January 9, 2013

Eric Holder and J.B. van Hollen worked together to turn the screws on this potential monopoly.

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Steve ®

9:45 am on Wednesday, January 9, 2013

Mike, look back at why Dean was forced to sell this plant less than 1 year ago. Then come back and I will accept any edits you wish to make to your statement.

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Haley Elizabeth Moran

7:38 pm on Wednesday, January 9, 2013

"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.

Steve Edlund

6:04 am on Wednesday, January 9, 2013

"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.”

If the business was losing money before the purchase, why didn't Dean Foods close the plant? Why would a well run investment firm dump millions into purchasing an operating business then releasing a statement about the business losing capital? Wasn't there due diligence of risk assessment for the investment firms investors? Of course there had to be.
Do you think Dean is likely to gain market share?
The stark reality is that the jobs and the people mean nothing to big business. They created the jobs, and they have the right to take them away. There is no such thing as community loyalty.

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TOM

9:36 am on Wednesday, January 9, 2013

Unless you are trying to sabatageSCOTT WALKERS goal of job creation

TOM

9:08 am on Wednesday, January 9, 2013

A good way for OBAMA to give SCOTT WALKER a job loss instead of a gain Boy this could be another fast and furious .Certainly was fast

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Steve

3:22 pm on Wednesday, January 9, 2013

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!!!!!

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Cows'r'us

5:56 pm on Wednesday, January 9, 2013

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!

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Haley Elizabeth Moran

7:30 pm on Wednesday, January 9, 2013

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.

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John Smith

7:06 am on Thursday, January 10, 2013

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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