Incomplete list of announced United States food supply shutdowns for the month of March, 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.
Netherlands based grocery store chain Ahold announced it will shutdown support offices in Massachusetts and Pennsylvania. At least 120 jobs lost! Administrators said it was the only way they could keep their food prices low for shoppers.
Pepsi and Coca-Cola announced they will each shutdown at least one of their bottling ops in Russia, blaming U.S. sanctions.
Spain based ‘fast casual’ restaurant Mondatidos chain has placed 1-hundred of its U.S. restaurants into chapter 11 bankruptcy. It should be noted that none of Mondatidos restaurants in other countries are part of the bankruptcy, apparently the economy is that bad in the U.S.
In the latest Warren Buffett-3G Capital deal Kraft and Heinz were merged, making it the 5th largest food company in the World. According to Nightly Business Report the “first order of business” is to kill $1-billion USD worth of cost, mainly in marketing and manufacturing, that’s translates directly to job killing. ‘Investors’ loved the news of job killing (as they always do) and pushed Heinz stock prices upward by 35%.
Alabama: In Helena, after 13 years the owners of Frankie’s Market Café announced they are shutting down in April. They blame rising costs of operations, especially utility cots. In Birmingham, the Bottletree Cafe shutdown, reports say the property was sold, the owners said only “We have ten days left.” Bogue’s Restaurant now chapter 11 bankrupt busted: “A prime motivation factor for Bogue’s filing its reorganization case was to be able to pay its tax debts in an orderly manner.”-Bradley Hightower, attorney
Alaska: A brand new grocery store already shutdown in Bethel! Swanson’s shutdown only nine months after opening, local news media says company administrators refused to answer their phone calls. The owner of the building also refused to talk to the local news media.
Arizona: In Tucson, after ten years the owners of Bluefin Seafood Bistro announced they will shutdown in May. They blame the new greedy property owners: “Our lease term is ending and we could not come to an equitable deal on our lease renegotiation with the new center owners.”
California: In Santa Barbara, Palo Alto and Laguna Hills after only one year three Fresh Market grocery stores shutdown, 179 jobs lost! The administrators of the North Carolina grocery chain said “We believe that our resources will be used more productively elsewhere…”, meaning the economy in The Golden State sucks. The new Los Angeles based owners of former British empire grocery store Fresh & Easy announced they will shutdown 50 Fresh & Easy stores across The Golden State, Arizona and Nevada! Albertsons-Safeway issued several WARNs saying an additional 129 people will be laid off from the Safeway Pleasanton HQ in April, then another 188 layoffs by the end of May! It’s blamed on the take over by Cerberus owned Albertsons.
Colorado: In Colorado Springs, 144 years old (surviving the Great deflationary Depression and numerous recessions) Sinton Dairy Foods announced they will end fresh milk production and layoff 120 employees by May! It’s part of their plan to make a new extended shelf life milk.
Connecticut: In West Haven, decades old American Steakhouse shutdown. The owners say they have to “downsize” and claim they’re helping their employees find new jobs.
Florida: Restaurant-hotel operation Bonaventure Resort & Spa issued a WARN saying 296 employees will be laid off due to the sale of the business.
Idaho: In Boise, Post Holdings announced it will shutdown their PowerBar factory in July, 165 jobs lost! Company administrators have decided to outsource the making of their energy food to unknown contractor factories, in the name of increasing profits.
Hawaii: Switzerland based GMO seed maker and farm chemicals seller Syngenta laid off 23 Hawaiians. Administrators say it’s part of their “Accelerating Reduction Leverage program” meant to cut $1-billion in operating costs by 2018! Proof the economy is not recovering.
Illinois: In Lansing, after more than 90 years (surviving the Great deflationary Depression and numerous recessions) De Jong Brothers Farm shutdown. The spinach farmers blamed ever increasing operating costs, especially those created artificially by new federal regulations (Food Safety Modernization Act), 30 jobs lost.
Indiana: In Evansville, Wesselman’s Supermarkets announced they will shutdown their Pollack Avenue store.
Iowa: In Des Moines, the owners of the 27 years old food store New City Market announced they will shutdown by the end of April: “A lot of it has to do with the business climate.”-Jim Raife
In Davenport, a decades old Godfather’s Pizza shutdown: “The lease is up and for the amount of revenue it brings, it is not feasible to stay.”-Andy Fuhrman, co-owner
Maine: In Ellsworth, the Coffee Express shutdown, the owner refused to talk to local news media.
Maryland: Mass producer of frozen food Gourmet Express Acquisition now chapter 11 bankrupt busted. Company administrators blame crashing sales (an almost $20-million drop in sales).
Michigan: Byron Township based grocery chain owner SpartanNash announced they will shutdown ten grocery stores in their “western store base”. They say it’s necessary as part of their plans to “expand”. In Flint, Kroger shutdown yet another grocery store. They shutdown their Davidson Road store, 65 jobs lost.
New York: After 61 years the Lindenhurst Diner shutdown. The owners say a property developer made them an offer they couldn’t refuse. In Lake Placid, after 90 years (surviving the Great deflationary Depression and numerous recessions) another iconic Howard Johnson’s restaurant shutdown. It was one of only three left in the United States. The owner sold the property. In Orleans County, Brown’s Berry Patch shutdown its retail berry picking ops. In Loudonville, Sodexo issued a WARN saying they lost a major food service contract and will shutdown in June, 193 jobs lost!
North Carolina: Lowes Food announced it will shutdown its last two grocery stores in Gastonia by April, 160 jobs lost! Cary based convenience store The Pantry is now owned by British empire Canadian company Alimentation Couche-Tard. As a result, at least 250 people in North Carolina are now being laid off! In Raleigh, the owners of 518 West Italian Cafe said Easter Sunday is their last day of business. It sounds like they’re going to sell the property. In Asheville, the owner of the brand new Katuah Market says the economy is so bad he’s already giving up: “We’ve been struggling ever since we opened and, for whatever reason, sales dropped off a cliff at the first of the year! At this point we can’t continue, we’d need to be 50% higher in sales.”-John Swann
North Dakota: So much for oil wealth, in Fargo after 92 years (surviving the Great deflationary Depression and numerous recessions) the owners of Quality Bakery announced it will shutdown by the end of April. They said the oil boom did nothing for them as they’ve been trying to sell the business for the past seven years, with no luck.
Oregon: In Portland, after 15 years the Red & Black Cafe shutdown. The owners were known to refuse service to cops. Their reason for shutting down was unclear, as they said they were just being responsible business owners.
South Dakota: In Tea, Oggie’s Grille & Bar shutdown.
Virginia: Kroger announced another shutdown of a grocery store, this time in Portsmouth in April. The store was originally owned by Hannaford, but Kroger took that company over in 2000.
West Virginia: The Mountain State’s largest food bank is about to shutdown. Administrators of the Mountaineer Food Bank, in Gassaway, said they’ve run out of money and can’t pay their employees! Some employees are now working for free: “It’s the hardest working crew I’ve ever been around! They don’t have much, but I’ll tell you what, they understand…the Mountaineer Food Bank spirit is here. It’s a gut wrencher! We’re in crisis management now.”-Dave Karr, interim director
Wisconsin: Veggie canning company Del Monte shutting down operations; their Sager Creek processing facility in Pulaski, and their warehousing and labeling facilities in Oconto Falls. Nearly 250 jobs will be lost by June! Company administrators would say only that it’s a move they had to take in order to keep Del Monte “strong”. California based jelly bean maker Jelly Belly announced they will sell-off their $43-million Pleasant Prairie factory and gift shop. Company administrators say it’s part of their plan to consolidate operations.
February 2015: Boston Weak property owners more destructive than terrorists!
WARN=Worker Adjustment & Retraining Notification