August 18, 2011

Milk Way files for voluntary bankruptcy

Milk Way, a Bulgarian dairy business, has filed for voluntary bankruptcy, according to data from the country's commercial registry.

The company has amassed over BGN4.5 million (US$3.3 million/EUR2.3 million) in debts to the state, affiliates and suppliers, Milk Way said in a filing to the commercial registry on August 11.

Milk Way had difficulty implementing its development strategy and marketing its products at competitive prices during the ongoing economic crisis, it added.

Milk Way is owned by local retailer Hybernia-Vitella. Last month, another dairy company from its portfolio - Markelli, filed for voluntary bankruptcy as well.

Milk Way, set up in 1994, is based in Kazanlak, in southern Bulgaria.