Premium Brands’ plant closure to affect 200 employees
B.C.-based Premium Brands’ plant in Toronto, which manufactures processed meats, will close this December
Toronto – A Vancouver-based specialty food manufacturer is closing its processed meats plant in Toronto.
Premium Brands Holdings Corporation says the plant will close this December, affecting 200 employees.
The facility, which was built in 1958, is located in a predominantly residential area. Premium Brands says it looked at options to continue to operate the plant, but it’s age and location didn’t make the various options feasible.
The Toronto plant currently produces branded and private label processed meats for retail and foodservice customers.
The company says it will gradually transition a portion of the business to its other production facilities in Ontario starting this spring.
Employees will each receive severance packages and will have access to personal counseling and outplacement services and workshops.
John Beliveau, Premium Foods’ COO of the Retail Group, says the company regrets the impact the shutdown will have on the employees. “We greatly appreciate their years of service and dedication and will do our best to help them through this time of transtition.”
The costs associated with the shutdown, which will consist primarily of employee severance outlays, are estimated at $7.3 million ($5.4 million after tax), most of which will be expensed in the fourth quarter of this year.
“The shutdown of the Toronto plant,” says Beliveau, “and the corresponding transfer of production to our three other state-of-the-art or recently renovated deli meat production facilities in Ontario, combined with the investments we are making in expanding the capacity of these facilities, is expected to result in an increase in our pre-tax earnings of approximately $2.4 million.”
Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution business with operations in B.C., Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nevada, Ohio and Washington State.
The company’s brands include: Centennial Foodservice, OvenPride, Direct Plus, Harlan Fairbanks, Creekside Bakehouse, Hempler’s, Hygaard, Grimm’s, Harvest, Duso’s, McSweeney’s, Piller’s, Maximum Seafood, Duso’s, Freybe, Bread Garden Go, Deli Chef, Piller’s, Shahir, Hub City Fisheries, Audrey’s, Maxium Seafood, SK Food Group, Quality Fast Foods, and Gloria’s Best of Fresh.