Maker’s Pride, the US contract manufacturer formed from the bankruptcy of Hearthside Food Solutions, is set to close two factories as part of its restructuring efforts. The company, headquartered in Downers Grove, Illinois, plans to finalize these closures in the third quarter, affecting locations in Salt Lake City, Utah, and Shakopee, Minnesota.
This strategic move follows the completion of a significant corporate restructuring in late 2024, during which Maker’s Pride wiped out approximately $2 billion in debt. The company articulated that the closures align with its “long-term growth strategy,” aimed at enhancing operational efficiency and better positioning itself to meet shifting food and beverage industry trends.
When Maker’s Pride rebranded last April, it operated 27 facilities, primarily focusing on baked goods, salty snacks, and nutrition bars. Just prior to the rebranding, Hearthside announced the closure of its Anaheim facility, which resulted in the loss of 175 jobs. In May of the previous year, the company also revealed plans to close its snack bars plant in Nashville, impacting 229 positions.
“As Maker’s Pride accelerates investment in strategic growth categories and modernizes its operations with advanced automation, the transition is designed to enhance efficiency, support innovation, and better position the company to meet evolving customer and consumer expectations,” the company stated on March 12.
While Maker’s Pride did not disclose the specific number of jobs affected by the closures in Utah and Minnesota, the company has committed to offering transition resources to impacted employees. CEO Darlene Nicosia emphasized that the decision to close these plants involved thorough consideration of various business factors and market dynamics. She expressed a strong commitment to treating team members and customers with fairness and transparency during this transition.
Last April, Maker’s Pride reported approximately $600 million in liquidity, bolstered by investments from Apollo and Oaktree Capital Management. The company highlighted that its financial recovery included raising $200 million through an equity rights offering and securing $190 million via an asset-backed loan.
As Maker’s Pride navigates these operational changes, it maintains a focus on adapting to the evolving landscape of the food and drink business while upholding a commitment to industry excellence. The company’s future will be shaped by its ability to leverage insights into food and drink consumer trends, ensuring that it meets market demands effectively.
