Yelloh, formerly known as Schwan's Home Delivery, ceasing operations, 79 Wisconsin workers laid off
Sep 24, 2024
(WFRV) - The once-popular frozen food home delivery company Yelloh, better known as Schwan's Home Delivery, will cease operations before the end of the year and subsequently lay off 79 Wisconsin workers.
Cygnus Home Service, LLC, has submitted a Worker Adjustment and Retention Notification letter to the Wisconsin Department of Workforce Development announcing the closure of eight Wisconsin facilities, which will shut down in November.
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"It's with heavy hearts that we made the difficult decision to cease operations of Yelloh," said CEO Bernardo Santana in a news release. "We are thankful to our many loyal customers and hard-working employees for everything they have done to support us."
The following Wisconsin facilities that are closing, as well as the number of employees being laid off at that facility, are as follows:
400 Industrial Dr. in Fennimore
Six employees laid off
1336 Capital Dr. in Fond du Lac
Five employees laid off
9740 S. 58th St. in Franklin
13 employees laid off
2782 Packerland Drive in Green Bay
11 employees laid off
1625 North Street in Prairie du Sac
13 employees laid off
1050 Benson Street in River Falls
Eight employees laid off
730 Craftsman Way in Sun Prairie
11 employees laid off
W. 3213 County Road B
11 employees laid off
In addition, one remote employee was laid off, making the total number of employees 79.
The company cited a number of insurmountable challenges to the business, including pandemic-driven staffing shortages and supply chain disruptions.
"These challenges, combined with changing consumer lifestyles and competitive pressures that have been building for over 20 years, made success very difficult," Michael Ziebell, a board member and 22-year veteran of the company, said in the release. "Digital shopping has replaced the personal, at-the-door customer interaction that was the hallmark of the company."
A union does not represent the affected employees, and bumping rights do not exist. Bumping rights mean senior-level employees whose positions have been eliminated will not be offered alternative positions currently held by a less senior employee.
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Corporate officials say the laid-off employees will be paid through Nov. 22, 2024, and will remain on the company's benefits plan, consistent with the Worker Adjustment and Retention Notification Act requirements.
Schwan’s began home delivery in 1952. In 2018, the Schwan family sold a 70% share of its business to the Korean firm CJ CheilJedang for $1.8 billion. However, the family kept Schwan’s Home Delivery business and rebranded it last year as Yelloh.