Superior Dairy, which is located in Canton, Ohio, was outbid in bankruptcy court as it tried to add Golden Guernsey Dairy to its operations. Golden Guernsey Dairy is located is located just outside of Milwaukee in Waukesha, Wisconsin, had been in business for 83 years, but sought bankruptcy protection by their Chapter 11 attorneys in January 2013.
Superior Dairy's final bid in the bankruptcy auction was $7.265 million, but that bid was topped by Lifeway Foods. The Morton Grove, Illinois company won the auction with a bid of $7.4 million. The next step will be a hearing to determine if Lifeway Foods has secured the financing to back the bid. Lifeway Foods is a publicly-traded company with sales last year of $89.9 million and financing is not expected to be an issue. Should Lifeway Foods' bid not go through, though, Superior Dairy could acquire Golden Guernsey Dairy.