DENVER — Old Dominion Peanut Company, a subsidiary of Hammond's Brands, has announced plans to close its manufacturing facility in Norfolk, Va. The closing is expected to be completed by early summer, according to the company.
|Andrew Schuman, president and c.e.o. of Hammond's Brands|
"Business decisions that directly impact our employees are extremely difficult," said Andrew Schuman, president and chief executive officer of Hammond's Brands. "Old Dominion has operated in Norfolk for over 100 years, and we have employees that have been with us for nearly 40 years. The plant closure does not reflect the end of the Old Dominion Peanut Company; rather it marks the beginning of the next chapter of our business operations for long-term health."
The Norfolk facility employs approximately 70 workers and produces products such as peanut brittles, nut candies and chocolate-covered nuts. A portion of operations will be moved to Hammond's Brands' headquarters in Denver, and certain other production will be transferred to a third party under a co-manufacturing agreement.
"This is a company restructuring initiative that will allow the company to intensify product scope and drive future profitability to our core businesses," Mr. Schuman said. "Our response to this unfortunate solution is that we must combine a commitment to long-term investments in innovation and manufacturing. We believe this closure is crucial to our ability to increase efficiency and reduce the company's cost structure. Today's news will allow us to accelerate our growth strategy and drive long-term change, all to further Hammond's success."
Hammond's Brands acquired Old Dominion Peanut Company in 2013.