Aryzta Closes Austin Bakery 

Aryzta closed its Austin, Texas, bakery — laying off the entire workforce of 95 people — on East Stassney Lane March 6, according to a WARN notice submitted to the state’s Workforce Commission.

The letter states the closure is permanent. 

In a statement to KXAN News, Aryzta spokeswoman Kathy Lenkov said the Austin bakery was operating “under capacity.” 

Aryzta makes hamburger buns for McDonald’s and Otis Spunkmeyer cookies, in addition to artisan breads, cookies, doughnuts, pastries, and pizza, according to the Austin American-Statesman.

Aryzta has been facing financial issues in the last years and its financial report for 2019 shows that, for North America, its revenue declined by (4.8)% to EUR1,397.9m during the year ended 31 July 2019. Organic revenue declined by (3.8)%, with a positive price/mix of 1.3% partially offsetting volume declines of (5.1)%.

In 2018, Aryzta has sold its Cloverhill bakery business in Chicago to Twinkies maker Hostess Brands and Bimbo Bakeries. 

During 2019, ARYZTA North America recorded a loss on the finalization of the disposal of the Cloverhill businesses of EUR2.0m, as well as EUR3.0m of other fixed asset impairments. In addition, Aryzta North America incurred EUR6.9m of other restructuring-related costs, primarily related to severance and staff-related costs, and advisory and other costs, incurred as a direct result of the consolidation of bakeries and rationalization of management functions during the year as part of project renew.