Oberweis Receives Bid After Bankruptcy Protection Filing

NORTH AURORA, IL — Just over a week after popular ice cream maker Oberweis Dairy, Inc., filed for bankruptcy protections, a prominent Illinois entrepreneur entered a bid to purchase all operating aspects of the company, officials announced Tuesday.

The company received what’s known as a stalking horse bid — one that is arranged as a reserve bid in advance of an auction — from Brian Boomsma, who plans to operate and grow the business, Oberweis executives said in a news release. Boomsma put in a bid to purchase “substantially all the operating assets of the company pursuant to section 363 of the bankruptcy code and subject to court approval.”

“We are thrilled to have a business leader like Brian Boomsma interested in investing in Oberweis and enabling the company to continue to move forward and prosper,” Oberweis President Adam Kraber said in a statement. “We continue to be grateful to our loyal customers, vendors, and committed employees who have supported us through this process.”

The North Aurora-headquartered Oberweis filed a voluntary petition for Chapter 11 bankruptcy protections April 12, saying it owes more than $4 million to creditors. The filing means that Oberweis will reorganize its debts and assets under court supervision and work towards paying the creditors back.

The family dairy company listed multiple food vendors and transportation companies among the entities it owes money, as well as the Cook County Treasurer's Office, which is owed $173,000, Patch reported.

RELATED: Oberweis Dairy Files For Bankruptcy Protection

Oberweis started in 1915 when Aurora dairy farmer Peter Oberweis began selling extra milk to his neighbors, according to the company’s website. As of Tuesday, its plan is to complete the sale and reorganization of the company by June and emerge under new ownership, Kraber said.

“The Oberweis team continues to be optimistic about the future of the company and building on nearly 100 years of providing the highest quality dairy products and service to our customers,” the president said.