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.

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