Oberweis Dairy Chapter 11 lists nearly $4.1 million owed to top 20 creditors

NORTH AURORA – Oberweis Dairy, a longtime and iconic name for ice cream and milk products in Kane County, filed for Chapter 11 bankruptcy reorganization April 12, citing nearly $4.1 million owed to 20 creditors, according to U.S. Bankruptcy Court records in the Illinois Northern District.

Neither company officials, nor its bankruptcy attorneys responded to requests for comment.

With headquarters in North Aurora, the company has 43 ice cream stores in several states, as well as in St. Charles, Elgin, Bartlett, Geneva, Naperville and Bloomingdale.

The Geneva ice cream store also is part of a restaurant, That Burger Joint and Woodgrain Pizza together in the same location.

Oberweis also provides home delivery of milk products and other foods.

The voluntary bankruptcy petition states there are 1,000 to 5,000 creditors in all and that the company has assets valued from $10 million to $100 million, and liabilities from $10 million to $50 million.

A voluntary Chapter 11 filing means the company is seeking a financial reorganization with a plan to keep the business alive while it pays off creditors over time, according to the U.S. Bankruptcy Court website.

“A plan of reorganization is proposed, creditors whose rights are affected may vote on the plan, and the plan may be confirmed by the court if it gets the required votes and satisfies certain legal requirements,” according to the website.

The filing lists the top 20 creditors with the largest unsecured claims — one of which is $721,726.83 owed to Greco & Sons, a Bartlett company that is a specialty Italian food distributor.

Tahmina Khan, director of account receivables, said most of the products provided to Oberweis was related to ice cream flavorings, napkins and paper plates, as well as pepperoni and pizza sauces for its That Burger Joint locations.

“They have been our customers since 2017,” Khan said.

Obwerweis’s attorneys did not respond to an email asking about the unlisted creditors.

Another creditor, Trico Mechanical Inc. of Sugar Grove, is owed $63,431.

“It’s disappointing,” said owner Ron Ruddick. “It was a bit of a surprise, yes. ... It’s out of my control at this point. I’ll go along with the court systems and hope to recover some or all of the debt.”

Ruddick said the company provided infrastructure and mechanical piping upgrades at the main location in North Aurora for the equipment that processed their milk products.

“I’m not going to go chasing them down,” Ruddick said. “It’s a matter of time and waiting to see what the bankruptcy court decides.”

Other creditors did not respond to messages or emails seeking comment.

Other creditors listed in the filing include:

• St. Charles Trading Company, an Elgin-based food ingredients distributor, owed $114,282.50

• Associated Electrical Contractors in Woodstock, owed $77,368.39

• QCS Purchasing Cooperative in Lisle that serves the dairy industry, owed $261,780

• Senscient Flavors and Fragrances of Hoffman Estates, owed $91,411.87

• 1836 Farms in Terrell, Texas, an organic dairy farm, owed $428,688.28

• Cook County Treasurer, owed $173,004.64

• Hiretech in Houston, Texas, a human resources company, owed $373,265.48

• International Food Products, Chicago, a company that specializes in flavors and custom blends, owed $103,906.43

• Nussbaum Transportation Services of Hudson, Illinois, a trucking company, owed $774,145.54

• Pearl Valley Eggs of Pearl City, Illinois, owed $73,560.54

• Penske Truck Leasing Company of Earth City, Missouri., owed $132,453.80

According to the company website, Oberweis started in 1927, with its first ice cream store opening in 1951.

A former Illinois state senator from Sugar Grove, Jim Oberweis bought the business from his brother in 1986, then passed it on to his son Joe in 2007, according to the website.

Joe Oberweis said he is no longer with the company.

The current company president, Adam Kraber, who signed the Chapter 11 petition, did not respond to a voicemail message seeking comment.