Shearer’s Foods is permanently closing a production facility in Lubbock, Texas, and laying off all 176 workers, according to a filing with the Texas Workforce Commission (TWC).
The Massillon, Ohio-based company is a contract manufacturer and private label supplier of salty snacks, cookies and crackers.
“After an extensive period of consideration, the difficult decision has been made to shutter production at our facility in Lubbock, effective March 31,” the company said in an email to FreightWaves. “This decision came after closely analyzing our supply chain and determining how to best manufacture our products to service our customers. The decision was made largely due to a decrease in demand from the largest customer of the facility.”
Shearer’s opened the 180,000-square-foot facility in Lubbock in 2007. The company and its subsidiaries currently operate 16 manufacturing facilities and a distribution center in North America. Company officials did not say if they plan to close other facilities.
In December, Shearer’s Foods was acquired by New York-based private equity firm Clayton, Dubilier & Rice. Terms of the acquisition were not disclosed.
Transportation and logistics provider Hollingsworth is shutting down a distribution center in Fort Worth and laying off 153 workers.
Company officials said the facility’s closure was related to losing a contract with security and aerospace firm Lockheed Martin. All employees will be terminated by March 31.
The employees, represented by the International Association of Machinists and Aerospace Workers District Lodge 776, have begun applying for positions at Lockheed, officials said.
“The reason for our ceasing operations relates to Lockheed Martin opting not to renew our commercial agreement and taking the work … in house,” Hollingsworth officials said in a notice filed with the TWC. “The majority of our employees at this location have interviewed with Lockheed Martin in hopes of retaining their position with that company.”
Hollingsworth is based in Dearborn, Michigan. The company has 27 facilities across the country and employs about 4,000 workers.