Topeka-Area Dairy Farm Files Chapter 11 Bankruptcy

By: Associated Press
By: Associated Press

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Wednesday, November 21, 2012

A Kansas dairy farm says it has filed for Chapter 12 bankruptcy because continued drought and heat reduced the amount of quality feed and increased stress for the operation's 55 cows.

Iwig Family Dairy issued a news release Wednesday saying its output was further compounded by higher fuel and energy costs.

The Topeka Capital-Journal reports the dairy operates out of Tecumseh, just east of Topeka, and has been run by the Iwig family since 1910. It started dairy production, bottling and retail services in 2005.

The dairy will have 90 days to create a reorganization plan to provide for payment to its creditors.

The company says it will continue its operations and pay its employees, with its retail locations in Topeka, Tecumseh and Lawrence to remain open.

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