Incomplete list of announced United States food supply shutdowns for the month of February, 2015: Many food suppliers/distributors are consolidating operations and killing jobs due to the collapsing grocery store and restaurant industries, as well as rising costs of food production.
The U.S. Department of Agriculture’s (USDA) February Outlook for U.S. Agricultural Trade shows continuing declines in U.S. exports to other countries “…down $2.0 billion from the November forecast and $11.0 billion from fiscal 2014.” The amount of food being imported into the U.S. is growing “…at a record $119.0 billion, up $3.0 billion from November, and $10.0 billion higher than in fiscal 2014.” As a result U.S. trade surplus is “…down from $43.3 billion in fiscal 2014…the smallest surplus since fiscal 2007.”
Arizona: In Green Valley, after 14 years The Old Time Butcher Shop announced it will shutdown in March. The owners say a 60% drop in business is a sign to spend more time with their great-grand-children.
California: Safeway grocery chain issued a WARN saying another 213 jobs will be lost in April! Blame Cerberus Albertsons for the hostile takeover of Safeway. Food and coffee supplier Farmer Brothers issued a WARN saying they will shutdown in Torrance, 271 jobs lost by May! In Santa Monica, International Coffee & Tea issued a WARN saying they will shutdown in April, 69 jobs lost. In Fresno, historic Tailspin Tommy’s Aerodrome Eatery shutdown, local news media said “money ran out”. In Bakersfield, Caesar’s Italian Delicatessen shutdown: “February 13th will be our last day…..We first opened our doors in June of 1971…..It’s been a profound honor to serve everyone who has walked through our doors over the years and this is an incredibly sad day for us.”-owners facebook posting
Colorado: Lakewood based Einstein Bros Bagels announced it will shutdown 39 stores across the United States, apparently due to lack of sales: “After careful evaluation, Einstein Noah Restaurant Group, Inc. (“ENRGI”) has come to the difficult decision to close 39 underperforming restaurants, effective Tuesday, February 24, 2015.”
Connecticut: Ohio based grocery store XPect Discounts announced it will shutdown all remaining stores in The Constitution State by the end of 2015! Local news reports say no ‘official’ reason was given.
Delaware: In Bethany Beach, the Harris Teeter grocery store shutdown, 39 jobs lost. This comes after company administrators said they were going to expand the grocery chain.
Hawaii: After only three years The Grove in Kailua was discovered to be shutdown. News reports indicate the restaurant actually shutdown back in December, no comment from the owners.
Illinois: In Chicago, after 18 years Carmichael’s Steakhouse announced it will shutdown in March, blaming the greedy property owner. The property was sold off and will be used to build an apartment complex. The restaurant manager is pissed, as his business was good: “It’s unfortunate that we have to close when we’re still doing really good business.”-Ben Sawyer
Indiana: After seven years Richmond chocolate shop Ghyslain Bistro shutdown. The owner said he’s focusing on his stores in Kentucky and internet sales.
Kentucky: Remke Markets announced they could not afford to renew their lease on their Newport grocery store. The store will shutdown at the beginning of March, 58 jobs lost.
Massachusetts: It may have survived the Marathon bombing but it can’t survive the Boston Weak economy; the iconic FORUM Bar & Restaurant shutdown, the owner blames evil property owners for killing it off: “After the tragic events of the 2013 Boston Marathon….four long months of reconstruction…bureaucracy…the current real estate climate on Boylston Street has motivated FORUM’s landlord to raise rent…nearly three times our current rate…makes it financially impossible…”
Michigan: Ciolino Fruit and Vegetable Market shutdown its Monroe store, saying it wasn’t worth it to renew the lease. In Kalamazoo, with little notice to employees the Harding’s grocery store on Howard Street was sold off and is being shutdown, 60 jobs lost. In Northville, decades old Starting Gate Saloon restaurant shutdown and was sold-off. In Mount Morris, after 43 years meijer department and grocery store shutdown. Administrators basically said the sales were not high enough to justify renewing the lease. News reports say the building will be torn down, but no other info was available, 190 jobs lost!
Missouri: A major advertising company in Saint Louis laid off 15 people. Administrators of Osborn Barr blame crashing orders for advertisements from its primary client; the farm industry.
Nebraska: After 19 years the Herbs & More store shutdown. The owner is retiring due to massive competition. After 37 years, the new owner of Duggan’s Pub (formerly Sam’s Pub) announced it will be shutdown in March. The new owner is a property developer. Italy-Netherlands based New Holland farm equipment maker CNH Industrial announced they will layoff 136 U.S. citizens at their Grand Island factory by the end of July! Company administrators blame the bad global economy for crashing sales.
New Jersey: Camden based iconic soup maker Cambells announced it will begin massive job destruction in order to cut $200-million USD over the next three years. For proof there is no economic recovery, company administrators say company profits have been crashing steadily since 2008, with no end in sight: “Like other companies in our industry, we’re contending with now not just the long term impact of the Great Recession on consumer purchasing behavior, or the increasingly complex public dialog when it comes to food, or the regulatory environment for food.”-Denise Morrison, ceo
New York: In West Point, Land O’Frost announced it will shutdown its recently acquired Wimmer’s Meats factory by Autumn. Company administrators claim they had plans to operate the factory for years to come, but the economy is worse than they thought, 125 jobs lost! In Fredonia, food company ConAgra-The Carriage House issued a WARN saying they will shutdown in May, 423 jobs lost! They also revealed the layoffs actually began back in October!
North Carolina: The new Brazil based owners of iconic Chiquita is shutting down the Charlotte HQ beginning in April, between 262 and 350 jobs lost! State and local administrators are demanding Chiquita pay back all the tax incentives it got. Brazilian Cutrale and Safra group took over Chiquita late last year. In Charlotte, famous chef Emeril announced he is shutting down his e2 emeril’s eatery and e2GO in April: “The restaurant was never able to achieve the volume projected…”-facebook statement
Ohio: After more than 70 years the owners of Springboro Hardware announced they will shutdown in March. They blamed a crash in customer traffic on the shutdown of the nextdoor IGA grocery store. Food maker General Mills confirming it will shutdown its 56 years old New Albany Pillsbury dough factory by the middle of 2016, at least 440 jobs will be lost! General Mills and worker’s union administrators claim the employees will get a generous severance package if they stay on until the shutdown, and could even make 26 bucks per hour. The shutdown will also affect 70 contracted workers at the nearby package making factory Sonoco (they make the tube cans for the Pillsbury Pop-n-Fresh dough products). The New Albany Pillsbury dough factory is the lifeblood of the community, half of the employees will be retired early: “My brother’s been there as long as I have, my dad retired from there, my wife works there, her nephew works there, so it’s a big family thing. These people have been around each other all this time, and it’s coming to an end.”-Steve Early, employed at the mill for the past 21 years
Pennsylvania: Conshohocken based Saladworks now chapter 11 bankrupt busted and up for sale. Administrators claim the bankruptcy shouldn’t affect their more than 100 restaurants. The bankruptcy is blamed on internal fighting between top brass. O’Hara based Giant Eagle owned Good Cents Grocery shutting down all eight stores in Pennsylvania and Ohio, in March. Administrators with Giant Eagle blamed the bad economy for the failure of their Good Cents Grocery chain. Some of the Good Cents Grocery stores had been open for only one year, replacing Valu King stores! Each store has about 35 employees.
South Dakota: Michigan based grocery store owner SpartanNash announced they will shutdown their Rapid City food distribution center in April, 49 jobs lost. Company administrators say the bad economy is forcing them to consolidate warehouses.
Tennessee: A 2014 University of Memphis study stated that only seven of the 77 low income areas of the city have full service grocery stores, now that might be down to six; a Kroger Food & Drugs on the 4000 block of American Way, in Memphis, shutdown with short notice and without explaining why.
Virginia: In Martinsville, the owners of 50 years old Snow’s Sandwich Shop say the bad economy is forcing them to shutdown at the end of March, unless somebody loaded with cash can take it over. In Arlington Heights, Panera Bread shutdown: “For 15 years, the Panera Bread bakery-cafe on Evergreen Street has been privileged to serve our neighbors in downtown Arlington Heights. With the expiration of our lease, we have decided to close this location on Feb. 24 at 6 p.m.”
Washington: The owner of Boat Street Cafe says she will shut it down in May, she still has two other restaurants. More proof you can’t blame the internet for stealing business from brick-n-mortars! Internet based ‘organic’ food promoter Farmstr shutdown. Ignorant company administrators blamed competitors like California based GoodEggs, which if you read my January 2015 Food Crisis report you’ll see even GoodEggs is in trouble! In other words, it’s the overall bad economy not competition.
Wisconsin: In Milwaukee, Love Handle Restaurant shutdown. Apparently the economy is so bad in The Badger State the owners decided to “head back to Indiana to start on new projects.”
January 2015: “we’re losing everything”
WARN=Worker Adjustment & Retraining Notification