A massive grocery brand company is now closing three factories leaving the public begging officials to ‘do something’.
Bimbo Bakeries has announced that it will be closing a major location in Auburn, New York, one of three expected to shutter.
A spokesperson for the company released a statement after news of the Auburn closing was announced.
“We will transition production to bakeries in our network that are better equipped to support our future growth,” a spokesperson for Bimbo Bakeries USA said.
“We remain grateful for our hardworking associates at these bakeries and are committed to providing them with resources and support to ease their transitions.”
Fans have shared their thoughts on social media after learning of the closures.
“City officials need to do something to fix this,” one fan raged on Facebook.
A second fan said they would miss smelling the rolls while traveling to one of the locations.
“Sad to read Auburn is losing this business,” said a third.
“One more empty facility in our beautiful city and state,” wrote a fourth.
“Very sad. Change our leadership people!!!!!!” a fifth fan commented.
Grupo Bimbo CEO Rafael Pamias revealed the reason for the closure of the three bakeries.
Pamias said on a call with investors that the bakeries targeted for closure are “older and less efficient” than other facilities.
Pamias revealed that the bakeries only accounted for less than 2% of the company’s total capacity.
Diego Gaxiola, Grupo Bimbo’s chief financial officer, said the closures will benefit the company financially in 2025.
With the closures comes the loss of work for many employees.
Bill Andre, business agent for the Bakery, Confectionary, Tobacco Workers, and Grain Millers International Union Local 116, found out about the news at 11 am on Tuesday.
Andre revealed he was “blindsided” after working for the bakery for 12 years.
“It just hit me like a ton of bricks,” he added.
He is set to meet with representatives to help secure severance packages for employees who lost their jobs.
Employees who have worked with the company for less than a year are still set to receive severance pay.
Auburn Mayor Jimmy Giannettino said the city will do whatever it can to help those affected by the closures.
“My heart goes out to the hardworking men and women who are affected by this closure,” said Giannettino
He said he was “disappointed that ownership did not reach out to local or state officials to discuss whether or not this could have been avoided.”
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
A beloved grocery chain now confirms unexpected closures across the Northeast taking place by the end of the year.
Grocery chain Stop & Shop has announced that a total of 32 underperforming locations will shutter in the U.S.
The company said the select stores across the Northeast will be closed before the end of the year.
Stores in New Jersey, Massachusetts, New York, Connecticut, and Rhode Island will close by November 2.
In May, the company announced the coming store closures.
“Stop & Shop has evaluated its overall store portfolio and made the difficult decision to close underperforming stores to create a healthy base for the future growth of our brand,” company president Gordon Reid said, per a July 12 press release.
The company’s president added that the closures were essential “to create a healthy base for the future growth of our brand.”
Fortunately, employees will be offered other positions within the company, according to a press release.
The grocery outlet first opened in 2014 and currently has around 400 stores and 60,000 employees, per Fox affiliate KRLD.
Stop & Shop is owned by Ahold Delhaize which also owns Food Lion, Giant Food, and Hannaford.
Which grocery stores are closing?
In New Jersey, 10 locations will close, while only seven will close in New York.
Rhode Island will see two closures and Massachusetts, the home of the first location, will be closing eight.
Five stores will also be closing in Connecticut.
As other chains such as Walmart and Amazon join the grocery business, it has pushed traditional grocery stores out of view, reports The-Sun.
Stop & Shop hopes the closure of underperforming stores will create “future growth” for the company.
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