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A 97-year-old company in the United States will be forced to close its doors after it recently filed for Chapter 11 bankruptcy protection.
Oberweis Dairy was founded in 1915 by Peter Oberweis, a dairy farmer who began selling milk from the back of a horse-powered cart, according to the company’s website. The company opened its first ice cream shop in 1951 and its second ice cream shop in 1991.
The company, based in North Aurora, Illinois (United States), filed its petition on Friday in the United States Bankruptcy Court for the Northern District of Illinois. Its objective is to reorganize and restructure the company that has assets and liabilities between 10 and 50 million dollars.
The company also has ice cream parlors and has a history of several years | Photo: Facebook/oberweis
With five thousand creditors, the company assured that the funds will be available for distribution to unsecured creditors. Oberweis Dairy now operates nearly 40 ice cream and dairy stores in Illinois and Missouri.
The North American company owes more than four million dollars to the top 20 unsecured creditors, including Nussbaum Transportation of Hudson, Illinois, which is owed more than $774,000; Greco & Sons, of Bartlett, Illinois, was owed almost $722,000; to Penske Truck Leasing of Earth City, Missouri, they owed more than $132,000.
According to the petition, Oberweis Dairy also owes more than $173,000 to the Cook County treasurer’s office in Chicago. Oberweis Dairy has been in business since 1927, when Peter J. Oberweis, a dairy farmer in Aurora, began selling extra milk to his neighbors from the back of his horse-drawn wagon, according to the company’s website.
A voluntary Chapter 11 filing means the company is seeking financial reorganization | Photo: © Getty Images
The company is owned by the family of former Illinois state senator Jim Oberweis, who served in the state legislature from 2013 to 2021. He also ran twice for the United States Senate in 2002 and 2004, and ran for governor in 2006, but lost in the elections. Republican primaries all three times. He also ran for Congress in 2008, but lost to Democrat Bill Foster.
A voluntary Chapter 11 filing means the company is seeking financial reorganization with a plan to keep the business alive while paying creditors over time, according to the U.S. Bankruptcy Court website.
“A reorganization plan is proposed, creditors whose rights are affected can vote on the plan, and the plan can be confirmed by the court if it obtains the required votes and meets certain legal requirements,” according to the information published on its page.
Tahmina Khan, director of accounts receivable, said the majority of the products provided to Oberweis were related to flavorings for ice cream, napkins and paper plates, as well as pepperoni and pizza sauces for its That Burger Joint locations.
The company also has a high production of ice cream | Photo: Facebook/oberweis
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