Rich's is shutting down a food manufacturing plant in Fridley and laying off 170 workers starting this fall, the company recently informed the state.
The New York-based, family-owned packaged food maker did not specify a reason for the closure in its notice to the Minnesota Department of Employment and Economic Development.
But Allie Friedman, a spokeswoman for Rich's, said in a statement the company has already communicated to its workforce it's "consolidating production of the products made in Fridley across our U.S. manufacturing network."
"The decision was part of a regular assessment of our operations to ensure we're running our production as efficiently as possible, at both the right capacity and at the lowest possible cost for our customers and consumers of our products," Friedman said. "We're supporting our people through this transition by providing severance packages, career assistance and job resources."
Friedman added Rich's will still have a presence in Minnesota with two facilities in Motley and Eagan that employ more than 200 people. Rich's has 100 global locations and more than $5 billion in annual revenue. It also owns Minnesota-based Morey's Seafood.
Rich's bought the Fridley facility from TreeHouse Foods in 2020. The plant specialized in baked breads and finished cakes sold to bakeries and restaurants. The expansion was part of "Rich's long-term plans for growth." But it occurred just as the pandemic disrupted American food spending.
Layoffs will begin in September, and the plant will close by the end of the year.
"Continually optimizing our operational efficiency is an important move," Friedman said, "that enables us to drive growth, create enhanced value for our customers and keep costs down for consumers who enjoy our products."