Century-old Chicago dairy institution Oberweis files for bankruptcy protections

Aurora-based dairy company Oberweis has filed for Chapter 11 bankruptcy protections after nearly 100 years of business, according to reports. The family-owned company is known for its ice cream and farm-fresh groceries.

According to the Chicago Tribune, Oberweis owes more than $4 million to multiple unsecured creditors including local Italian food company Greco & Sons and the Cook County Treasurer.

Oberweis was conceived in 1915 by dairy farmer Peter Oberweis, who began selling milk from a horse-drawn carriage. The small business officially became Oberweis Dairy in 1930, according to the Tribune.

The company owns dozens of franchise dairy stores in Chicagoland, Michigan, Indiana, and St. Louis. Oberweis’s products are a staple of various Midwest grocery stores.

In 1986, Oberweis heir and former State Senator Jim Oberweis became chairman of the company, according to the Tribune. Fourth-generartion CEO Joe Oberweis took the helm in 2007, but is reportedly no longer involved with the company. 

On Tuesday, the company announced it will close its North Aurora manufacturing plant and lay off 127 workers, according to ABC Chicago. The job cuts will reportedly start in June.