North Aurora-based Oberweis Dairy, a longstanding family-owned business with a rich history dating back to 1915, has recently sought Chapter 11 bankruptcy protection. The dairy company, known for its ice cream stores and presence in grocery stores across the Midwest, is currently facing a significant financial burden amounting to more than $4 million in debt to its 20 largest unsecured creditors.

According to the bankruptcy filing made on Friday in Chicago, Greco & Sons, an Italian food service company based in Bartlett, tops the list of unsecured creditors owed, with an outstanding debt of over $721,000. Additionally, Oberweis Dairy is reported to owe the Cook County treasurer a sum exceeding $173,000.

Originally founded by Peter Oberweis as a dairy farm in Aurora, the business quickly expanded throughout the years to become Oberweis Dairy in 1930. In 1986, Jim Oberweis, Peter's grandson, purchased the company and accelerated its regional growth, before venturing into a career in Republican politics.

With over 40 ice cream store locations in the Chicago area, northwest Indiana, Michigan, and St. Louis, Oberweis Dairy has established itself as a beloved brand. Its dairy products, including traditional bottled milk, are consistently stocked in grocery stores throughout the Midwest. In 1997, the company further expanded by inaugurating a new production facility and headquarters in North Aurora.

Joe Oberweis, the youngest son of Jim Oberweis, took on the role of fourth-generation leader in 2007. However, according to a recent message from Joe, he is no longer involved in the dairy business, leaving his position approximately a year ago. The filing reveals that Oberweis Dairy currently employs 1,149 individuals, including 933 part-time workers.

Adam Kraber, listed as Oberweis Dairy's president in the bankruptcy filing, has yet to respond to inquiries for comment.

While Oberweis Dairy has been synonymous with milk and ice cream, the Oberweis name gained further recognition due to Jim Oberweis' active involvement in Republican politics. Over the years, Jim, now 77 and residing in Sugar Grove, has run several influential but unsuccessful campaigns, including bids for U.S. senator in 2002, 2004, and 2014, where he won the Republican nomination but lost to Democratic incumbent Dick Durbin. He also fell short in the Republican primary for governor in 2006 and in two bids for U.S. Congress.

Notably, Jim did achieve electoral success by winning a state senate seat in 2013 for the 25th District and serving as the Republican spokesperson for the Labor and Commerce Committee. However, he recently departed from his state senate position in 2021.

Efforts to reach Jim Oberweis for comment regarding Oberweis Dairy's bankruptcy filing were unsuccessful at the time of reporting.

This Chapter 11 bankruptcy filing marks a challenging period for Oberweis Dairy, which now aims to restructure its finances in order to regain stability and continue serving its loyal customer base throughout the Midwest.