Been looking at what happened to Sears, and I'm starting to think Dean Foods is headed in the same direction. From everything I'm seeing it looks like that absent some miracle, we'll be filing Chapter 11 sooner rather than later.
Am I just being paranoid? I certainly hope so, but I doubt it...
I guess it did happen
The most poorly run company I've ever worked for. Parted ways with them ten ago. They put the location I worked at out of business two years after I left. Terrible customer service and the push to constantly try to cut customer's deliveries. To top that a unrealistic profit margin. That doesn't work for a cross dock operation. Kept trying to run it like one of their plants. When they bought the location it was growing operation because they had the original owner run it. As soon as they push him out it's only took them three years to destroyed the company. Good riddance to Dean Foods.
wow. you saw that coming! im sorry to hear the recent news.
milk is a loss-leader at stores...pricing pressures from the shelf on down to the farm are enormous....a dip in consumption only exacerbates....milk is now overproduced by conglomerates and oversized 'farms' that care less and less about quality & healthfulness...maybe this is in part behind the drop in consumption
Up next, mercenary’s...
When your banker finds out, the xyz’s gonna hit the fan.
Deans is through.
So do we have an update on this under $2 a share
The company was good for me. 15 years here. I hope all will be fine.
I have been in the fluid milk business for 30 years. Worked for Dean 10 of those years.
Yes Dean will file chapter 7. They are at a point of no return. They have 1.8 billion in debt, and van not service this debt. They just stopped issuing credits to customers for out of date milk, which is a common industry standard to offer credit. This is a sign of desperation by Dallas. They also started surcharging customer a delivery fee, another sign of desperation from a management that does not know the dairy DSD industry. Good bye Dean Foods.
Are you serious, do you believe Dean is the only company that manufactures dairy products, have you been to a store ever?
If dean foods goes out of business, where will their customers get their dairy products? Milk, yogurt, kefir, butter, cream, etc. Im sorry but plant based substitutes just dont hold a candle to the nutritional content, not to mention flavor, of cows milk.
I can't imagine they would go out of business or bankrupt. Milk is a staple.
President Donald Trump’s administration has proposed raising $16 billion through an increase in premiums over 10 years, but that’s just a band aid. Premium hikes in other PBGC insurance programs have prompted some companies to shut their pension plans. Another option, cutting benefits for retirees, would be a politically difficult pill to swallow. Yet JPMorgan estimates a collapse in the PBGC program would result in workers getting only 2 percent of expected benefits, hurting an already strained population. Fixing this problem will require pain on all sides.
The U.S. House of Representative’s Subcommittee on Health, Employment, Labor, and Pensions is scheduled to hold a hearing on March 7 on what it called the multi-employer pension crisis. The Pension Benefit Guaranty Corp’s multi-employer insurance program had a deficit of $54 billion in the 2018 fiscal year and is expected to be insolvent by the end of the 2025 fiscal year, absent any changes.
The PBGC’s multi-employer insurance program covers over 10 million people and last year provided $153 million in financial assistance to 81 insolvent multi-employer plans with a total of 62,300 retirees. “As more time passes, the changes required to prevent insolvency become more disruptive and painful for participants, plans and employers,” PBGC Director Thomas Reeder said in his 2018 annual report.
A multi-employer pension plan is created through a collective bargaining agreement between employers and a union, usually in the same or related industries. UPS, DHL and Dean Foods are among the companies that participate in multi-employer pension funds. “JPMorgan estimates a collapse in the PBGC program would result in workers getting only 2 percent of expected benefits”.
You are right that 4th quarter results will disappoint without a doubt. If you have any stock left sell now!
What does this mean?
SEC filing reveals that lenders waived a net leverage convenant last week. Bloomberg notes the share price decline coincides with an even more dramatic drop in Dean Foods' unsecured bonds. Meanwhile, Goldman Sachs warns that the waiver might be an early indication that Q4 results will disappoint.
What does this mean about the retiree's pensions
Dean Foods is collapsing and will be the biggest collapse in CPG history. Shares sinking, closing Lynn Plant and losing 500 customers, market basket just kicked Garelick Farms to the curb and Stop & shop is next to kick out Garelick farms. Milk was delivered to Norton public schools {per Food Service Manager Matt) over the summer along with Cumberland farms, stop and shop in NON refrigerated trucks in 95* days.... yes you read that right. It was all about saving thousands of dollars and not giving a c-ap about the 300+ employees that worked there for many many years.... great business plan... karma will get the executives that have stock options worth very little.... #DF stock sinking fast just like the company #BYE
Been weathering the Dean storm for fifteen years, When you have to give your #1 Customer credit for everything that expires there goes your profit...... Also the company bought a fleet of automatic Semis that s--- fuel really bad. Spent Millions to put dash cameras in the cabs. Bad decisions being made that will bring this company down.
Will Dean’s offer severance packages?
Canada's dairy market
Canada keeps strict import quotas on dairy products and applies steep tariffs on products coming in that exceed the quota. The tariffs range from 200% to 300%.
Imagine Saputo worth $10 Billion (Canada Company) buying Dean Foods and getting around the tariffs.
Blue Bunny is a No-brainer so Ice Cream is not part of the fluid milk sale.
Is the "Canadian" and "Blue Bunny" information based on actual information that you've heard or is this just speculation?
First quarter of 2019 Dean Foods will be sold to a Canadian company and Blue Bunny will buy Ice Cream sector.
Probably be something big like GM just sprung on everyone, plant closings, big layoffs.
MORE THAN LIKELY I THINK THEY'LL BE BOUGHT OUT. MAYBE WHEN THE STOCK GETS DOWN UNDER $2 A SHARE !!!