Conagra Brands plans to close a US manufacturing plant in the new year, with the loss of 442 jobs.
A Worker Adjustment and Retraining Notification (WARN) has been filed with the Missouri local government office informing the authorities of the US food group’s intention to shutter its Macon facility on 15 January.
Law firm Strauss Borrelli said it is “investigating” The Healthy Choice meals brand owner for not complying with WARN regulations requiring 60 days’ notice to employees that they would lose their jobs.
As a result, Strauss Borrelli said the affected workers should be entitled to 60 days severance pay and benefits given the WARN advisory was issued by Conagra Brands on 9 November.
Conagra Brands, which appointed former JM Smucker executive John Brase as its new president and CEO in April, had not responded to Just Food’s request to explain the reasons for the closure at the time of writing.
This publication was also seeking comment from the Marie Callender’s pies manufacturer on the claims made by Strauss Borrelli and its layoff package proposals to the impacted employees.
Brase took up his new positions at Chicago-based Conagra Brands on 1 June before the company’s latest results were issued in September. He replaced Sean Connolly, who had been at the business for more than a decade.
First-quarter net sales to 30 August fell 1.4% to $2.6bn, while the organic metric was down 1.1%.
Net profit, meanwhile, climbed 6% to $174.3m but operating profit declined by 22.7% to $268.4m. Diluted EPS rose 5.9% to $0.36.
Richard Lenny, the independent chair of Conagra Brands’ board, had said in April upon Brace’s appointment: “John’s track record of driving top- and bottom-line performance, building brands across multiple consumer-packaged goods categories, leveraging advantaged business systems and leading inclusive, results-driven cultures is exceptional, and we are confident Conagra will thrive under his leadership.
“The decision to appoint John as Conagra’s next leader follows our thoughtful approach to succession planning, including discussions with Sean, and our determination that now is the right time for this leadership transition.”
Conagra Brands’ shares have fallen more than 14% this year to $14.83 on the New York exchange.
