YOUNGSTOWN, Ohio – The receiver for Schwebel Baking Co. filed notice of plans to abandon the leases on 17 places where the bakery company operated.
The locations span warehouses, retail stores and retail sales and distribution centers in Ohio, Pennsylvania and New York, including the Allstate Warehouse on North Avenue in Youngstown and the Schwebel’s Bakery Outlet in Franklin, Pa.
“… the Receiver has determined since the Receivership Entities are not operating and are conducting an orderly liquidation that the Abandoned Property already has been vacated and/or surrendered to the respective landlords and is not necessary for the Receivership Entities to retain further,” says the notice filed Tuesday in U.S. District Court in Youngstown.
It says any parties that object or want to respond to the abandonment must file a written objection with the court.
The 120-year-old Schwebel Baking Co. announced plans in June to wind down operations and liquidate its business. In its announcement, the company cited facing significant operational and financial constraints for many years. These challenges include aging manufacturing facilities and equipment, costly labor contracts and pension obligations and consumer trends depressing demand for traditional bakery and bread products.
A receiver, KCP Advisory Group, was appointed last month by a federal judge to oversee the wind-down. The order stems from a lawsuit filed earlier in July by Spectrum Commercial Finance LLC, which contends Schwebel owes it nearly $3.8 million plus interest, cost and fees. Spectrum asked the court to appoint a receiver.