CHILTON (NBC 26) -- Foremost Farms USA plans to close its Chilton facility in July, the company announced Monday.
The company will permanently lay off about 50 employees. The layoffs are anticipated to occur on July 17, the company said in a notice to the Wisconsin Department of Workforce Development.
The notice says the company is facing "significant challenges" to its business operations, including "a plant layout, infrastructure, and building and equipment age perspective at its Chilton facility."
The company also notes challenges brought on by coronavirus.
"Work order volumes from food service clients have decreased in a short period of time creating product over-capacity and a sudden production demand drop," the company states in a news release.
Greg Schlafer, Foremost Farms USA president and CEO, said in the news release that the company doesn't see an immediate bounce back in cheese orders from food service clients serviced by the Chilton location.
“This is not a reflection on our employees in Chilton," Schlafer said. "This is a business decision that has nothing to do with their performance, which has been excellent. We are committed to treating our employees with respect and dignity and will be working with them through this transition.”
The company said it will be working through the details of a severance package in the coming weeks. The company said the 53 employees who work at the facility were informed of the decision Monday.
Foremost Farms states in the news release that the Chilton plant was built in the 1940s. The plant made Italian cheeses including Provolone, which is sold into the food service market for sandwiches.
