PE Firm To Shutter Strike-Stricken N.Y. Factory

Jul 7 2009 | 2:16am ET

Following a federal order to reinstate 134 striking workers at its Stella D’oro bakery in the Bronx, private equity firm Brynwood Partners is shutting the factory.

Last week, a National Labor Relations Board administrative law judge sided with the Bakery, Confectionery, Tobacco Workers and Grain Millers union, finding that Stella D’oro, which makes Italian-style cookies and breadsticks, had improperly refused to bargain with the union. This week, it reinstated the workers, only to tell them it would shut the New York factory in October.

“The decision to close the Bronx bakery operations has not been made in haste or without significant planning,” Stella D’oro said. Greenwich, Conn.-based Brynwood, which bought Stella D’oro from Kraft Foods in 2006, made to decision to pull the plug.

Stella D’oro notified the union that it would be shutting the plant, required by federal law to provide 60 days notice of mass layoffs.

Stella D’oro said it would move the bakery operations and continue to produce the products currently manufactured in the Bronx. The company says that the hourly wages and paid leave under the contract that expired in August made the factory bleed losses.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...