An unexpected company in Kentucky is now closing four facilities according to a recent filing with the Kentucky Career Center.
Yelloh, the iconic company formerly known as Schwan’s Home Delivery, has announced the permanent closure of five of its facilities in Kentucky.
This decision sheds light on the challenges faced by the industry amid evolving consumer demands and economic pressures.
The communities of Bowling Green, Burlington, London, and Prestonsburg will soon bid farewell to Yelloh’s distinctive yellow trucks, which have been a familiar sight on their streets for decades.
The company, which pioneered the concept of home food delivery back in 1952, has made the difficult decision to shutter these locations and consolidate its operations.
A total of 51 employees are set to be affected by the closures.
While the company has stated that these individuals will receive their final paychecks on July 27, 2024, and remain covered under the company’s benefits plan during the transition period, the announcement has sent shockwaves through the affected communities.
Yelloh’s decision to downsize its operations in Kentucky follows a recent rebranding effort and a series of layoffs across multiple states last year.
The company has cited economic headwinds, rising business costs, and the post-pandemic landscape as factors necessitating these difficult choices, reflecting the evolving nature of the industry and the challenges it faces.
As the food delivery industry continues to adapt to changing consumer preferences and market conditions, companies like Yelloh are forced to make strategic decisions to ensure their long-term sustainability.
However, the closures in Kentucky will undoubtedly leave a void in communities where Yelloh’s presence has been a constant for generations.
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Other Economy News Today
Applications for unemployment benefits now surge to new highs, a sign that the white-hot labor market is starting to cool off.
First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, per CNN.
Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million.
That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics.
The latest numbers come less than a week after the monthly jobs report showed the US economy added just 175,000 positions in April, less than economists expected and a steep drop-off from prior months.
US employers have now added an average of 245,500 jobs per month, versus 2023’s 251,000-per-month average.
Still, hiring remains strong. Although the unemployment rate ticked up to 3.9% last month, it’s the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s.
Weekly jobless claims data tends to be volatile but, while one week’s worth of data “does not a trend make,” said Chris Rupkey, chief economist at Fwdbonds.
“We can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”
“Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year,” he wrote in a note Thursday.
The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.
While the labor market has so far resisted those efforts, remaining white hot for the past 18 months despite 11 rate hikes from the central bank, Fed Chair Jerome Powell said last week that demand has “cooled from its extremely high level of a couple of years ago.”
Ian Shepherdson at Pantheon Economics said in a note Thursday: “We’d need to see at least a month of elevated readings to convince us that the trend really has turned.”
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Also Read: A Giant Company Now Announces Unexpected Layoffs in Virginia
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