The Teamsters Union is suing Schwebel Baking over its plans to shut down.
Last month, the bakery announced it was permanently laying off nearly 700 workers across Ohio, blaming inflation and poor sales for the closure.
RELATED: Schwebel Baking Company closing retail stores, distribution centers after 120 years
Ten people who are part of the local union filed the lawsuit in federal court in Youngstown, claiming the company is breaking its contract with current and retired workers, failing to pay severance and health insurance.
"We'd like to see Schwebel's make our members whole in every way as agreed to with the vacations, prorated severance, continued healthcare retention bonus, which they declined on all," Teamster Local 52 member David Dudas said.
A judge has set a status hearing for the case.
We have reached out to Schwebel's for comment, and have yet to hear back.
You can read the whole lawsuit below:
In a federal court filing on Tuesday, records show that Schwebel's "may need to go through an expedited Chapter 11 bankruptcy process to achieve a sale of its business to a potential buyer" and that there is "presently a potential buyer" for the company.
Read the court filing:
