US bakery group Hostess Brands is to close a production site in New York City, a move that could affect 200 jobs.
The company said on Friday (8 October) that the plant, located in Jamaica in the borough of Queens was built in the 1870s and any moves to modernise the site would have been “difficult and expensive”. Hostess makes bread under its Wonder and Home Pride brands at the factory, as well as private-label lines.
The bakery, which is set to close in January, has around 200 plant and transport staff. Hostess also employs around 500 workers in New York whose jobs will not be affected, the company said.
“It is always a difficult decision to close one of our facilities, but during this slow economic recovery, we must carefully evaluate all options and take prudent steps to make our system more efficient and balance productivity and demand,” said Hostess CEO Brian Driscoll.
Hostess is controlled by private-equity firm Ripplewood Holdings and emerged in 2009 after the bankruptcy of Interstate Bakeries Corp. In April, Hostess announced plans to close a bakery in Ohio.