Oberweis Dairy Inc. has announced plans to lay off 127 workers at its North Aurora plant as a result of filing for Chapter 11 bankruptcy. This decision comes after the company disclosed that the job cuts will commence on June 11 due to the closure of the plant. The Illinois Worker Adjustment and Retraining Notification Act was cited in the filing notifying the state of these impending layoffs. Oberweis Dairy did not provide immediate comments on the situation, leaving many employees uncertain about their future.
The company’s Chapter 11 bankruptcy protection filing in the Northern District of Illinois revealed debts totaling over $4 million to its top 20 creditors, with a substantial portion owed to a transportation company based in Hudson. Despite employing roughly 1,100 individuals, Oberweis Dairy faces financial challenges exacerbated by declining U.S. milk consumption and demand for alternative high-protein, plant-based products. These difficulties led the company’s directors and managers, Julie and Jim W. Oberweis, to initiate discussions for the sale of the fourth-generation family business.
While Oberweis Dairy aimed to maintain operations and seek a potential buyer to preserve jobs, setbacks arose when a prospective buyer withdrew their bid in late March. This unforeseen development contributed to the company’s bankruptcy filing, intensifying uncertainties surrounding its future. As the dairy explores strategies to secure a buyer and mitigate losses, its employees are left grappling with the possibility of further job cuts and operational changes amidst a turbulent period for the iconic family-owned business.