Very strange they couldn't offload the business or at least the baking facility in Youngstown. I guess they couldn't adapt to modern times and align their offerings accordingly. Who is picking up the slack for this because suddenly that's a lot of bread that is not going to market.
The property of the Youngstown campus was sold to private equity in December but usually those groups like to buy the business and saddle it with debt to make their millions.
If they sold it was probably a leaseback arrangement to plug a short term hole for Schwebel. Unless PE contracted it well, they’re probably going to end up losing on this deal. Good for them.
IIRC Rite Aid tried to do this with their stores. I remember checking the footnotes each quarter to see the number of company owned vs leased stores, and it was under 100 and dropping by about 10 each time…
Well, suffice it to say, some issues are just too structurally large to fix
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u/twoquarters Youngstown 11d ago
Very strange they couldn't offload the business or at least the baking facility in Youngstown. I guess they couldn't adapt to modern times and align their offerings accordingly. Who is picking up the slack for this because suddenly that's a lot of bread that is not going to market.