Canada Bread closing two plantsComments Off
Toronto – Canada Bread Company Limited is closing two plants, one in Western and one in Eastern Canada.
The Edmonton, Alta. plant is slated to close this March and Grand Falls, N.B. is slated to close this June.
The company says the move was made to improve efficiencies in its network by reducing overheads, allowing rationalization of lower margin products and consolidating production into more efficient facilities.
The Grand Falls bakery produces a variety of cake products, sweet goods and English muffins. Approximately 75 employees will be affected.
The company says it will transfer English muffin production to other facilities. But the cake and sweet goods products will be discontinued when the facility closes.
The Edmonton bakery produces raisin and garlic breads and foodservice products. Approximately 46 employees will be affected. The company will transition all production from this facility to other bakeries.
The company says closure costs to be incurred in 2013, including severance, decommissioning and asset write-downs, are expected to amount to approximately $6.3 million before tax, $4.3 million of which is cash expenses.