This does not make sense at all.
The first and second largest American milk producers have filed for bankruptcy in the last two months.
@deanfoods and @BordenDairy.
This may end up being a thread.
cnn.com/2020/01/06/bus…
The first and second largest American milk producers have filed for bankruptcy in the last two months.
@deanfoods and @BordenDairy.
This may end up being a thread.
cnn.com/2020/01/06/bus…
In the case of Borden Dairy, they have 3,300 employees. The company says it can't afford it's debt nor it's pension obligations. Filing for bankruptcy is a way to negotiate using the courts in order not to pay those pensions.
They say that it's due to a drop in milk consumption and some are even saying that milk alternatives are to blame. But there has only been a 6% drop in overall milk consumption since 2015. That's just over 1% per year? Please. That's not the reason.
Moreover, they posted a net loss of $42.4m in 2019. With around $1.2 BILLION in revenue, that's a mere 3.5% loss. Compared to publicly traded companies like Uber and Snapchat that is NOTHING compared to the cash they're burning through every year. So what's going on?
What's buried in the last paragraph is that Borden was bought by private equity firm @KKR_Co in 1995.
But let's remember something else that's going on right now.
Investors are trying to jettison liability and hoard cash to weather the likely impending recession.
But let's remember something else that's going on right now.
Investors are trying to jettison liability and hoard cash to weather the likely impending recession.
Let's think back to those 3,300 American workers that are at the mercy now of the Capital-friendly bankruptcy courts and the pensions they've been cultivating for their entire lives, dedicated to their employer.
The owners and partners of @KKR_Co are billionaires and they're throwing these workers into the American hellscape of austerity just so they can remain UNSPENDABLY wealthy through this recession.
They were also owners of Toys R Us before their complete liquidation in 2017-2018. Back then they blamed Amazon and Walmart, which the corporate media of course unblinkingly published.
Of course founder and billionaire worth $5.8 billion, Henry Kravis, donated no less than $1 million to Trump's "inauguration" fund.
The bottom line is, this is just a battle in the war between Capital and Labor.
Capital will ALWAYS use employees as cannon fodder as they run naked and dazed through the forest fire of our economy. They will remain unimaginably wealthy before during and after this recession.
Capital will ALWAYS use employees as cannon fodder as they run naked and dazed through the forest fire of our economy. They will remain unimaginably wealthy before during and after this recession.
