Schwebel Baking Co. is turning off its ovens for good.
The 120-year-old bakery with operations in Pennsylvania announced this week it’s winding down over the summer and plans to liquidate its business.
Schwebel CEO Steve Cooper said the company was “devastated.”
Schwebel cited aging manufacturing facilities and equipment, labor costs and lower demand for bakery products as the reasons for its pending demise.
Headquartered in Youngstown, Ohio, Schwebel sells its bread and various baked goods in Giant Eagle, Shop ‘n Save, Kuhn’s, Family Dollar and other stores.
There’s a thrift store and distribution center in McKeesport with 26 employees and a distribution center in Bridgeville with 32 workers, according to the company.
Neither location has a firm closing date yet.
All told, Schwebel has 770 employees across Pennsylvania, Ohio and New York.
Founded in the early 1900s by Joseph and Dora Schwebel in their Youngstown kitchen, the company grew to two bakeries in Ohio and 20 distribution centers.
Its products include the brands ‘taliano, Millbrook, Country Hearth, Cinnabon and Sun-Maid. In addition to bread, the company makes buns and rolls for retail, grocery, food service and institutional customers.
The company plans to operate through July 4.
Schwebel said it tried to find an alternative to liquidation but could not.
“After evaluating all available alternatives and considering the company’s financial condition, the board of directors made the difficult decision to wind down operations and pursue a formal liquidation of the business in the coming weeks,” the company said.
“The Schwebel’s brand has been known for the highest quality of bread, buns and other bakery products for over 100 years, and we are devastated to reach the point where liquidation is the only remaining option,” said Cooper, the CEO.
“We’ve worked with our advisors for several months to identify a buyer or investment source, however despite significant efforts to adapt to changing market conditions and secure additional investment, the company was unable to establish a sustainable path forward.”