Yup, they deliberately ran it into the ground. They took out loans against Kmart to buy Sears and sold Sears and Kmart properties off to give themselves money via stock buybacks.
And what’s worse, because it worked, you can see similar actions happening to other major retail outlets. Target, in particular, seems to be following directly in the footsteps of Kmart.
What actually raises the price of milk is the farmer uses his profits to buy up other local dairy farms consolidating their position in the market. They then sign exclusivity deals with both grocers and further milk processors (who are also consolidating) to prevent competing in the market, driving their competitors to either sell for cheap or go out of business. https://theconversation.com/americas-dairy-farms-are-disappearing-down-95-since-the-1970s-milk-price-rules-are-one-reason-why-237439#:~:text=Across the country%2C the dairy,per farm – has been rising.
Because “farm Inc” has a massive horde of wealth, they can stamp out competition by either buying them out, cutting them out, or driving them out of business with prices a small farmer can’t handle. After that, they get to set and raise prices at will with the now smaller pool of big name “farm Inc”.
This literally happens every time a market is poorly regulated and businesses allowed to grow too big. It’s the natural end state of capitalism.