Caito Foods to Cut Jobs
Michigan-based SpartanNash (Nasdaq: SPTN) has decided to discontinue the Indianapolis-based Caito Fresh Kitchen operations. In a notice to the Indiana Department of Workforce Development, the company says more than 50 positions will be cut as a result of the move.
Caito’s letter indicates it expects layoffs to begin on or about October 15. The company anticipates the planned cuts, when finalized, would be permanent.
The company broke ground on its $32 million fresh kitchen process facility in 2015. Caito supplies fresh fruit and vegetables to grocery retailers and food service distributors in 22 states. The grocery retailer-distributor acquired Caito Foods Service in January 2017 for $217 million.
SpartanNash released its second-quarter financial results Wednesday and said “The Company reported operating earnings of $7.4 million compared to $29.8 million in the prior-year quarter. The decrease was primarily attributable to the impairment charges noted above, lower margin rates on comparable sales, higher supply chain costs and incremental losses from the Fresh Kitchen operations.”
The letter is required by the Worker Adjustment and Retraining Notification Act. WARN is a U.S. labor law that mandates employers with 100 or more employees to provide a 60-day warning of a plant closing or mass layoffs.