Marion, New York-headquartered Seneca Foods Corporation has announced that it will close its plant in Modesto, California, due to “challenging economic conditions.” The operation, which employs 265 people, is primarily engaged in packaging and warehousing of the company’s peach and fruit cocktail products.
Manufacturing operations will cease prior to the 2018 production season. Warehousing activities will continue for an unspecified period, however, as the facility serves as company’s west coast distribution center.
“The company recognizes that these changes will have a significant impact on employees and their families, and intends to offer transition benefits to these affected employees,” according to a statement issued by Timothy J. Benjamin, chief financial officer.
The shutdown in Modesto is expected to improve Seneca’s long-term financial condition and reduce leverage. Estimated restructuring charges as a result of the closure will be disclosed in future filings with the Securities and Exchange Commission.
About the Company
Seneca Foods is a major provider of packaged fruits and vegetables in North America, with facilities located throughout the United States. It transforms raw materials, sourced mainly from 2,000-plus American farms, into value-added products distributed primarily to retail private label and foodservice customers, with exports shipped to over 90 countries. Products are also sold under a number of brand names, including Libby’s, Aunt Nellie’s, Green Valley, CherryMan, READ, Seneca and Seneca Farms.
Seneca also provides contract packing services, mostly through its wholly owned subsidiary Truitt Bros., Inc. Additionally, it packs Green Giant label vegetable products under an agreement with B&G Foods North America.
