A POPULAR food delivery service is to close in several states in the coming months.
Yelloh, formerly known as Schwan’s Home Service, is closing five locations in Kentucky, resulting in the job losses of 51 employees.
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Closing is scheduled for July 27th.
“Our thoughts are most with the employees and their families. You know, it’s the lives of 14 people that have been impacted in our community alone,” Randall Weddle, Mayor of London – located about 80 miles south of Lexington.
Weddle added that there were people in the community who were unable to use other services to purchase groceries.
“As a community, we hate this because we know we have some elderly people in our community who use this service to get items,” he said.
“So we have a lot of people who depend on them showing up for that routine delivery and who don’t have the skills or knowledge of how to place that order online.”
He hopes workers will be able to recover quickly after the closure.
In central Minnesota, about 750 employees were laid off and 90 delivery centers were delisted in October.
Now, 44 more workers are at risk, with deliveries ending in St. Cloud and five other cities in July.
“We are sad to inform you that we will cease operations in some locations by the end of July 2024,” the company said in a statement.
“Despite ongoing efforts to transform our business locally, we simply don’t see a profitable path for these deposits.”
Customers can still order online and receive their items.
About 46 workers in New York will lose their jobs jobs of closure between now and August 26th.
Yelloh, then known as Schwan’s, began delivering ice cream in rural Minnesota in 1952 before becoming a staple across the country.
The drivers have always been known for their yellow trucks, the company’s trademark.
In 2019, CJ CheilJedang, a South Korean company, purchased most of Schwan’s for $1.8 billion.
Schwan family kept the delivery business and rebranded it as Yelloh.
However, with food delivery apps like Instacart, Uber Eats and DoorDash, the company has faced a lot of competition over the years.
Some customers said they felt dissatisfied with the company’s profits since switching to Yelloh.
“We are committed to caring for our affected team members and will work to support our customers as they transition to our online or app-based ordering solutions,” the company said.
This story originally appeared on The-sun.com read the full story
