The company notified its local employees of its plans in January citing profitability as a reason for the closing, according to a company statement. “Like many companies, Schwan’s Home Service routinely evaluates opportunities to create efficiencies and strengthen its business,” said Chuck Blomberg, Schwan’s spokesman, in the statement. “Unfortunately this sometimes means it is necessary to close locations that are not profitable.”
Blomberg said the decision was difficult to make given its impact on employees, and that workers were offered severance packages and outplacement services. Director of Marshall County Economic Development Josh Tubbs said, “We don’t want to see them go." Losing jobs and industry is not a situation the community wants to have happen.
Blomberg declined to comment on how many customers in the region were served by the familiar Schwan’s home delivery trucks. Blomberg said the company is making every effort to retain its current customers and will transfer customers to other depots where possible. Customers are being encouraged to mail order Schwan’s products. Local customers affected by the Calvert City closure are being contacted to adjust their service.
The Calvert City depot is an office space and small warehouse from which Schwan’s runs home-delivery routes.
Schwan’s Home Service is a subsidiary of The Schwan Food Company is based in Minnesota, and has about 420 sales and distribution centers throughout the country delivering hundreds of products to customers.
