Dallas-based Borden Dairy Company files for bankruptcy

One of the nation's largest dairy producers has filed for bankruptcy.

Dallas-based Borden Dairy Company is the second major dairy company to do so in recent months.

Studies show fewer Americans are drinking milk, resulting in declining sales.

“Despite our numerous achievements during the past 18 months, the company continues to be impacted by the rising cost of raw milk and market challenges facing the dairy industry,” explained Borden CEO Tony Sarsam. “These challenges have contributed to making our current level of debt unsustainable. Ultimately, we determined that the best way to protect the company, for the benefit of all stakeholders, is to reorganize through this court-supervised process.”

Borden produces nearly 500 million gallons of milk each year, employs more than 3,000 people and operates 13 plants across the country.

Borden representatives say they will continue to operate during their restructuring.

Dean Foods, the nation's largest milk producer, filed for bankruptcy in November.