US-based convenience products manufacturer Monogram Foods is to close a domestic plant that makes sandwiches and snacks, putting 240 jobs at risk.
The Dickson, Tennessee-based facility was bought by Nashville-headquartered Monogram three years ago when another food supplier had plans to close down its operation that was based there.
Monogram said it has made the “difficult decision” to close the site because demand has softened for the products it makes at the factory.
In a statement sent to Just Food, the company said: “We purchased the Dickson plant with intentions to make it a profitable and successful site, and while we have explored a range of options to continue operations, we have not identified a path to do so that is viable for our business.”
Monogram, which records revenues of around $1.4bn annually, said employees at the plant will be considered for open roles at its other locations.
It added: “There will be no disruptions to customer services because of this decision.”
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By GlobalData
Founded in 2004, Monogram manufactures meat snacks, appetisers, assembled sandwiches, fully cooked and raw bacon, corn dogs and other convenience products.
A co-manufacturer, which also supplies products on a private-label basis, it employs more than 4,000 employees and operates 13 manufacturing facilities in seven states.
Pritzker Private Capital acquired a “significant stake” in Monogram in 2021.
Last October, Monogram was hit with an additional fine over the use of child labour at a meat snacks plant.
The US Department of Labor (DoL) had already fined the company $30,000 in July when an investigation launched in March by the government office discovered two children working at the company’s meat snacks factory in Chandler, Minnesota.
That figure rose to “at least 11” at the same Monogram Meat Snacks facility, the DoL said in a statement, “nine of whom operated hazardous machinery”.