CLEVELAND — Schwebel Baking Company, a longtime Northeast Ohio staple in grocery stores and local kitchens, is going out of business.
Through a public relations firm, the company announced that "it will begin winding down operations and expects to initiate a liquidation of its business."
The closure will include bakeries in Youngstown and Hebron, as well as retail stores and distribution centers across Ohio, Pennsylvania and New York.
'Going to be really missed'
Getting a slice of bread with your barbecue is a common practice at many restaurants, including Slammin Sammy's.
Owner Sam Spain has served Schwebel's classic bread alongside his ribs for many years. It's good for soaking up juices and sauces, and he also uses the Youngstown company's buns for hamburgers and Polish Boys.
He said he was saddened to hear about the company's decision to cease operations.
"They're going to be really missed. They usually have fresh bread. They serve it in the neighborhood, at neighborhood stores, so that's always convenient," Spain said. "I'm going to have to find an alternative."
News 5 Anchor Damon Maloney caught up with Spain at his new location in the parking lot of Platform 13 Event Center at East 75th Street and Cedar Avenue. The smells of ribs, chicken wings and his signature sauce filled the air.
Spain said seeing Schwebel's, which has been in business for 120 years, fade away will create a ripple effect.
"Plus, all the employees who are going to lose their jobs. That's a really big thing, too," Spain said.
What happened
In a press release, the Youngstown company cited "operational and financial constraints," adding, "These challenges include aging manufacturing facilities and equipment, costly labor contracts and pension obligations, and consumer trends depressing demand for traditional bakery and bread products."
The company said it made "comprehensive efforts" to remain afloat, including financing and strategic alternatives, the sale of its business and operations and a request to temporarily defer certain pension obligations.
In a statement, Steve Cooper, chief executive officer of Schwebel Baking Company, thanked employees, customers and partners for their support.
“The Schwebel’s brand has been known for the highest quality of bread, buns and other bakery products for over 100 years, and we are devastated to reach the point where liquidation is the only remaining option,” Cooper said. “We’ve worked with our advisors for several months to identify a buyer or investment source, however, despite significant efforts to adapt to changing market conditions and secure additional investment, the company was unable to establish a sustainable path forward."
The company plans to operate through the Fourth of July weekend and wind down operations later this summer.
In 2019, Schwebel's closed its bakery in Solon.
RELATED: Schwebel's announces they are closing Solon bakery in May
The Solon plant had 204 employees and produced bread and rolls.
Schwebel's was founded in 1906.
