Oberweis Dairy receives bids after filing for bankruptcy protection

NORTH AURORA, Ill. — Oberweis Dairy announced that it has received a bid to purchase the majority of its operating assets.

The major announcement comes less than two weeks after the North Aurora-based company filed for Chapter 11 bankruptcy protection in the Northern District of Illinois.

Oberweis President Adam Kraber announced Tuesday that the company had received a stalking horse bid from Brian Boomsma, an Illinois business owner and entrepreneur, to purchase substantially all the operating assets.

According to Kraber, Boomsma plans to operate and grow the business.

“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. We continue to be grateful to our loyal customers, vendors, and committed employees who have supported us through this process,” Kraber said in a news release on Tuesday.

Kraber said the company expects to complete the reorganization process and sale by late June.

Oberweis is currently owned by family members of Republican State Senator Jim Oberweis.

In a separate announcement on Tuesday, Hoffmann Family of Companies (HFOC) declared that it has entered discussions with stakeholders to acquire all of the assets of Oberweis, through its investment arm, Osprey Capital LLC.

A spokesperson said HFOC is aware of the current bid to purchase the company and it intends to make a competitive offer to buy Oberweis Dairy and is “confident they will deliver the highest bid.”

“The Hoffmann family has a history of investing in multi-generational, family-owned businesses and was specifically drawn to invest in Oberweis because of its highly regarded history, brand and alignment with family values.,” a spokesperson for HFOC said in a news release.

Hoffmann Family of Companies is a family-owned private equity firm that consists of over 100 national brands and operates businesses in 30 countries.

The nearly-century-old ice cream and dairy company had filed papers in bankruptcy court on Friday, April 12, and listed more than $4 million in debt to creditors. Just days later, Oberweis announced plans to lay off over 100 workers.

Kraber said that the intent of the filing was to “seek debt relief while the company continues to operate in the ordinary course of business and pursue a sale of the business.”

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