Flowers Foods, Inc. on Aug. 9 announced plans to close its snack cake plant in Winston-Salem, N.C.
The plans to shutter the plant were included in the company’s second-quarter financial results. Flowers said the decision to close the plant was made “to improve the profitability of its Warehouse segment.”
The Warehouse division, the smaller of Flowers’ two operating segments, was the principal drag on the company’s quarterly results.
Flowers said sweet baked foods production at Winston-Salem would be shifted to “more efficient Flowers snack cake bakeries” and that employees affected by the closing would be offered a severance package.
According to the Sosland Publishing Company 2017 Baking Directory, Flowers Foods operates 49 bread and cake plants in the United States (a figure that includes the Winston-Salem plant). Other Flowers sweet goods plants include locations in Oxford and Philadelphia, Pa., and Cleveland, Tenn.Flowers said it expects costs associated with the closing of the Winston-Salem plant to be between $4 million and $6 million.