Caito Foods to Close Fresh Cut Unit, Eliminate Over 300 Jobs
Caito Foods was started in Indianapolis in 1965.
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowProduce wholesaler Caito Foods Services is closing its fresh-cut food manufacturing operations in Indianapolis, putting more than 300 Hoosiers out of work.
The grocery distributor says this move does not impact its produce distribution operations
Its owner, Michigan-based SpartanNash Co. (Nasdaq: SPTN), notified the state Friday of its plans to close the facility on the city’s east side.
In the WARN notice to the state, SpartanNash says the layoffs of 333 employees are expected to begin near the end of April.
The company said in the warning, “given a recent unforeseen cancelation of a customer contract that makes up a majority of our Fresh Cut business, Caito Foods LLC is forced to close its Fresh Cut manufacturing operations.”
In a statement to Inside INdiana Business, Meredith Gremel, SpartanNash vice president of corporate affairs & communications said “this notification does not impact the Caito Foods produce distribution operations which have been the foundation of the Caito business since 1965. This difficult decision was made to support the company’s strategy to deliver locally produced fresh-cut fruits and vegetables to its independent and national account customers, as well as corporate-owned retail stores. The company’s human resources team is working with associates who will be impacted by the transition.”
Last August, the company announced it was discontinuing a portion of the operations, resulting in 50 people losing their jobs.
SpartanNash says various factors may affect these plans on the timing of these layoffs, but the cuts are expected to be permanent.
The grocery retailer-distributor acquired Caito Foods Service in January 2017 for $217 million.