YOUNGSTOWN, Ohio – The 120-year-old Schwebel Baking Co., which produces branded and private-label fresh bakery products, announced Wednesday that it will begin winding down operations and expects to initiate a liquidation of its business.
The company produces high-quality bread, buns and rolls for retail, grocery, food service and institutional customers across Ohio, Pennsylvania and New York.
The wind-down will include the company’s bakeries in Youngstown and Hebron and its retail stores and distribution centers across the tri-state area. Schwebel’s intends to operate through the Fourth of July weekend and wind down its operations in an orderly fashion through the summer.
Schwebel’s has faced significant operational and financial constraints for many years, the company said. 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.
Schwebel’s made comprehensive efforts to explore all financing and strategic alternatives, including the sale of its business and operations, as well as making a request to temporarily defer certain pension obligations to preserve liquidity for essential improvements to the manufacturing facilities, according to a news release from the company.
The company was unable to execute a viable going-concern sale or secure additional liquidity and investment. After evaluating alternatives and considering the company’s financial condition, the board of directors made the decision to wind down operations and pursue a formal liquidation of the business in the coming weeks, according to the release.
“The Schwebel’s brand has been known for the highest quality of bread, buns and other bakery products for over 100 years, and we are devastated to reach the point where liquidation is the only remaining option,” said Steve Cooper, veteran bakery professional and CEO of Schwebel Baking Co. “We’ve worked with our advisers for several months to identify a buyer or investment source. However, despite significant efforts to adapt to changing market conditions and secure additional investment, the company was unable to establish a sustainable path forward.”
Cooper continued: “The board of directors, management team, shareholders and the Schwebel family are deeply grateful to our employees for their dedication to the Schwebel’s brand. Their hard work, commitment and pride in producing quality bakery products helped build and sustain this company for generations. We also extend our sincere appreciation to our customers, business partners, suppliers, retirees and the communities we have served throughout our 120-year history. Their loyalty and support have been instrumental in the success and legacy of Schwebel’s.”