Yelloh, formerly known as Schwan’s Home Delivery, made a significant announcement on December 8, revealing the closure of 90 delivery centers. The decision will impact approximately 750 employees, leaving them uncertain about their future.
Citing economic headwinds, rising business costs, and the uncertain post-pandemic world, Yelloh justified the closures as a necessary step for its survival. The company plans to narrow its focus and concentrate its efforts on 18 states, including Minnesota, where it will continue to provide delivery services.
The news of the delivery center closures was met with mixed feelings. While Yelloh acknowledged the heartbreak of the decision, it also emphasized its importance in securing the company’s future prospects. Unfortunately, this means that several positions, including salespeople and corporate team members, will be affected by the closures.
To alleviate some of the uncertainty facing employees, Yelloh has committed to providing the required 60-day notice and pay as outlined in the Worker Adjustment and Retraining Notification (WARN) Act. It is a legal requirement aimed at offering some financial stability during uncertain times.
Yelloh’s journey began back in 1952 when it started offering home delivery services under the name Schwan’s. In 2020, the company underwent rebranding, adopting the new identity of Yelloh. This change was aimed at refreshing the company’s image and aligning with its evolving business objectives.
The Schwan family, the founders of the company, made a significant decision in 2018 by selling a majority share of their business to the Korean firm CJ CheilJedang for a staggering $1.8 billion. This strategic move was intended to bring in new opportunities for growth and further strengthen the company’s position in the market.
As Yelloh navigates these challenging times, it aims to consolidate its operations, ensure profitability, and continue serving its customers in the states where it will maintain its presence. The company remains committed to evolving with the changing times and providing quality services to its loyal customer base.
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