New World Restaurant Group has announced it will close two dough manufacturing facilities in Eatontown, New Jersey, and San Fernando (metro Los Angeles), California.
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The company said that production at those plants, both of which were operating under capacity, will be moved to two plants that “are capable of manufacturing products for several different brands without requiring a major capital investment”.
Production will be consolidated into two state-of-the-art plants, a company-operated facility in Whittier, California, added through the acquisition of Einstein, and an Avon, Indiana, plant operated by Harlan Bakery, a contractor that has produced dough to the company’s specifications for the Einstein Bros brand.
New World expects to complete the closings of the 24,000-square-foot San Fernando facility and the 90,000-square foot Eatontown facility by December 2002. The company expects to record a one-time charge during this year’s third quarter for estimated employee severance, plant closing and lease obligation costs. The company also intends to repay the approximate US$2m balance on a note payable to the New Jersey Economic Development Authority relating to the Eatontown facility. Approximately 40 production and distribution personnel in Eatontown and another 20 in San Fernando will be impacted by the facility closings. This represents less than 1% of New World’s more than 7,700 employees nationwide, the company said.
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