BLOOMINGTON, Minn. — A Bloomington-based company announced that 90 delivery centers, which employed around 750 people, will be closing its doors on Dec. 8.
Yelloh, the company formerly known as Schwan's Home Delivery, said on Wednesday that its bright yellow trucks would be rolling out to fewer homes.
Citing "economic headwinds, rising business costs and the post-pandemic world," in a press release the company said it will close about 90 delivery centers across the country. Yelloh will then focus its efforts on 18 states, including Minnesota.
"This is a heartbreaking decision for our company, because we cherish our customers, our employees, and the special role our team members play in our local communities. Concentrating our high-touch delivery service in fewer locations – in states that are the foundation for our 70-year-old company – is the best path forward for Yelloh," the company wrote in a statement.
Multiple positions will be affected, from salespeople to the corporate team. "During this difficult period, we are focusing on taking care of our team members with 60-day notice and pay in compliance with the WARN Act, and serving our customers well," the company said.
The closures are expected to take place at the beginning of December.
Yelloh trucks will continue to deliver in Delaware, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Pennsylvania, South Dakota, Texas, Vermont, West Virginia and Wisconsin.
Schwan's began home delivery in 1952. In 2018, the Schwan family sold a 70% share of its business to the Korean firm CJ CheilJedang for $1.8 billion. But the family kept the Schwan's Home Delivery business and rebranded it last year as Yelloh.
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