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US: Wisconsin dairy closing leads to over 100 job cuts, causes skepticism of nation’s antitrust legislation

By  |  January 10, 2013

An 83-year-old dairy in Wisconsin is closing, resulting in a loss of 113 jobs, and reports are attributing its filing for Chapter 7 bankruptcy in Delaware back to antitrust legislation. The Dairy, named Golden Guernsey, was sold to OpenGate Capital by Dean Foods when Dean Foods was forced to sell assets by the state and US attorney general over concerns of price-fixing in milk sold to schools. Reports say the episode has national political implications, as the suit against Dean Foods was the first antitrust case under the Obama administration. Reports also say that the fallout over the legislation were predicted by Chris Olsen, CEO of ECO, Inc., who was asked to consult the Department of Justice before the ruling, calling it a “train wreck” of a plan. The DOJ originally forced DeanFoods to sell off its assets, including Golden Guernsey, after complaints it was running as a “hypothetical monopolist.” Golden Guernsey sold for $35 million.

 

Full Content: Wall Street Journal

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