CLEVELAND — As hundreds of Schwebel's employees will be laid off starting the week of July 6 through Labor Day, Cleveland-based Orlando Baking Company is extending a lifeline to those impacted.
Through a public relations firm, Schwebel's 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.
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RELATED: Schwebel Baking Company closing retail stores, distribution centers after 120 years
The closure will include bakeries in Youngstown and Hebron, as well as retail stores and distribution centers across Ohio, Pennsylvania and New York.
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 defer certain pension obligations temporarily.
Across 13 locations being shut down this year, a total of 673 Schwebel's employees will be laid off — 370 of those will be in Youngstown.
It's not just the Schwebel business being affected, though.
From a Cleveland food truck called Slammin' Sammy's to a Cleveland-based bread manufacturer, Orlando Baking Company, the business's announcement of closure is affecting many.
"They’re gonna be really missed. They usually have some fresh bread. They serve it in the neighborhood store. That’s always convenient. I’m gonna have to find an alternative," Slammin' Sammy's B.B.Q. owner, Sam Spain, told News 5 Anchor Damon Maloney last week.
On Monday, Orlando Baking Company CEO Danny Holan called Schwebel's one of the "largest providers in Ohio without question."
"We actually made an arrangement with them a couple of years back that they distribute our retail, so this impacts us directly. We've got to find another vehicle, if you will, to kind of get our goods to stores," Holan said. "It's all happening quickly and we're kind of navigating our way through it. We may not have all our oars in the water just yet, but we've got a little bit of time."
Holan said the baking industry as a whole has been rapidly changing, making it hard for those involved to keep going.
"We've had some strategic shifts over the last 10 years, maybe closer to five to seven. We're not everything to everyone where we used to be for many, many years. We've kind of focused more on our core items and just tried to pursue those opportunities for us. That's why we streamline some of the distribution because it just is kind of overwhelming, but it's worked out pretty well for us to date," Holan said.
Holan described the current state of the baking industry as "tough," so while he wasn't stunned by the closure announcement, he was a little surprised by the size of Schwebel's.
"It's a very capital intense, very difficult industry and it's changing with a lot of the people's tastes and profiles. You're getting a lot of the more health conscious or GLP-1 diets that are out there. That whole kind of taste panel of people has changed," Holan said.
But for the Orlando Baking Company, it'll keep pushing forward and hopes to do so with the help of some of these soon-to-be laid-off Schwebel's employees.
On Monday, the Orlando Baking Company announced it is offering immediate job opportunities to those impacted by the mass layoff.
"We just wanted to maybe get a little recognition out there that, you know, we understand and we're actually upset about this because it does change the whole industry," Holan said. "I'm fifth generation. We started in 1872 in Italy, in Cleveland in 1904. We've been here a long time, and we understand the industry pretty well. There's a couple of things in business that you need. One is obviously equipment and processes, but none of that works without people. We need good people to come work for us."
Holan said they're looking for people in leadership roles, as bakers' assistants, technicians, and in quality maintenance.
"We're adding a second shift on our first shift because of new opportunities and we've got some other ones coming so we're just looking to continue to grow and bring the best talent we can," Holan said. "We certainly feel bad for those families that are affected."
While the announcement came less than 24 hours ago, Holan said Orlando Baking Company has already received some interest.
"We're definitely hardworking, we're definitely hands-on. We're all hands-on and we try to do the best we can to provide the best product and service to our customers. If that's something that, you know, those Schwebel folks would enjoy, then we're the place to go," Holan said.
Orlando Baking Company employees are represented by the same collective bargaining unit as Schwebel's employees.
If you're interested in applying, visit Orlando Baking Company's website.
