Schwan’s in Winfield is one of several depots for the home food delivery service closing nationally.
According to the Cowley Courier-Traveler Tuesday, drivers were telling their customers of the depot’s impending closure slated for early December.
The Winfield location employs approximately five people, according to the city Wednesday.
“We received notice that the facility in the industrial park along with the three other remaining Kansas locations is closing,” Cowley First/Economic Development Director Jessica Falk said. “They are cutting 750 jobs nationwide and closing 90 delivery centers. Customers served in our area will continue to receive deliveries via UPS.
“I am working with our local facility to understand the impact of this closure for our community members and we are committed to connect the workforce with the resources needed to find employment within the community.”
Schwan’s, which changed its name to Yelloh! last year, stated in a press release on Oct. 25 it would focus truck operations in neighborhoods within 18 states: Delaware, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Pennsylvania, South Dakota, Texas, Vermont, West Virginia, and Wisconsin.
In 2018, the Bloomington, Minnesota-based company sold to South Korea’s largest food manufacturer, Seoul-based CJ CheilJedang for $1.8 billion for an 80-percent stake, while the Schwan family retained 20 percent ownership in the business and 100 percent ownership of Schwan’s Home Service Inc. — the home-delivery business that Marvin Schwan began in Marshall, Minnesota in 1952, according to a report of the sale by the Associated Press Nov. 15, 2018.
“At Yelloh®, our mission is to deliver extraordinary food and experiences to our customers,” the corporate office said in October. “Facing economic headwinds, rising business costs, and the post-pandemic world, our teams across the country have worked valiantly to transform our company into a modern category leader.”
In 2004, Schwan’s agreed to purchase property from the City of Winfield to build a $1.5 million depot building at its current location, 3900 E. 12th in Winfield off the bypass near the Winfield Industrial Park across from one of Rubbermaid’s facilities.
The phone number listed for Schwan’s Winfield location was disconnected Wednesday morning.
“This is a heartbreaking decision for our company, because we cherish our customers, our employees, and the special role our team members play in our local communities,” Yelloh said. “Concentrating our high-touch delivery service in fewer locations – in states that are the foundation for our 70-year-old company – is the best path forward for Yelloh.”
