Oberweis Dairy, the nearly century-old suburban business known for its milk products and ice cream stores, filed for Chapter 11 bankruptcy protection on Friday, according to court documents.
Documents filed in U.S. Bankruptcy Court for the Northern District of Illinois showed more than $4 million in debt to the company's top 20 creditors. The list included Penske Truck Company, the food safety company EcoLab and the Cook County Treasurer's Office.
A total of $173,004.64 was owed to the treasuer's office, court filings showed.
Chapter 11, the type of bankruptcy being sought is often called "reorganization" bankruptcy, which allows an entity to remain in operation while restructuring its finances and debts.
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A fourth-generation family business, Oberweis Dairy was founded by Peter J. Oberweis, an Aurora dairy farmer, who began selling leftover milk on the back of a horsedrawn carriage. In 1927, he became co-owner of Big Woods Dairy and later established Oberweis, according to the dairy's website.
Peter's grandson, Jim, purchased the company 1986 and "directed the business onto a growth trajectory that continues to this day." Jim, who currently serves as chairman, ran for multiple elected offices and became a common fixture in Illinois politics. He sought the Republican nomination for governor and U.S. Senator and was a member of the Illinois State Senate from 2013 to 2021.
Oberweis operates a total of 43 stores, with the majority in the Chicago area. Its products are sold in several states including Illinois, Indiana, Wisconsin, Ohio, North Carolina and Virginia.
