Cincinnati-based grocery giant Kroger has announced that its longtime bakery facility in Columbus will be closed, effective immediately. 411 workers will be made redundant.
In a statement, Kroger blamed the immediate closure on “the outdated layout and age of the equipment” at the factory. The plant, which is almost 100 years old and had operated under the Kroger name for about 90 years, was locked and guarded by security staff Monday.
The company said the bakery has been under evaluation for “some time.”
“We are in a highly competitive business environment that is driving our company to ensure all areas of our business are meeting their full potential. As a company, we must be able to adapt to the ever-changing retail environment and meet the needs of our customers. After evaluation of the equipment and layout of the plant, it became clear that the outdated layout and age of the equipment were no longer sustainable for us to remain competitive. Production at the plant will cease immediately and the process of decommissioning its operations is expected to take 60 – 90 days,” the company writes in a statement.
The company will honor the terms outlined in the collective bargaining agreements meaning that all Columbus Bakery associates will be paid as they normally would for 60 days before receiving severance based on years of service as outlined in their collective bargaining agreements. Additional services through Lee Hecht Harrison will be offered to eligible associates to participate in career building workshops, and all associates are encouraged to consider available positions in other Kroger facilities and business units, according to the company.
Kroeger says that it continuously evaluates the efficiencies of its operations to ensure that every Kroger Manufacturing facility is meeting its full potential and, at this time, there are no plans to close other facilities in its network.
Photo source: supermarketnews.com