Seneca Foods to Close its Modesto, California Facility
February 16 2018 - 5:21PM
Seneca Foods Corporation (“Seneca”) (NASDAQ:SENEA), (NASDAQ:SENEB)
announced today that it will close its plant in Modesto,
California, due to challenging economic conditions. The
facility is primarily used for packaging and warehousing of the
Company’s peach and fruit cocktail products. The Company expects
this plant closure to improve its long-term financial condition and
reduce leverage.
Estimated restructuring charges as a result of
the closure will be disclosed in future filings with the Securities
and Exchange Commission. Production operations at this
location will cease prior to the 2018 production season.
Warehouse operations will continue for an unspecified period
serving as the Company’s west coast distribution center.
The Modesto workforce includes approximately 265
full time employees. The Company recognizes that these changes will
have a significant impact on employees and their families and
intends to offer transition benefits to these affected
employees.
About Seneca Foods
CorporationSeneca Foods is North America’s leading
provider of packaged fruits and vegetables, with facilities located
throughout the United States. Its high quality products are
primarily sourced from over 2,000 American farms. Seneca
holds the largest share of the retail private label, food service,
and export canned vegetable markets, distributing to over 90
countries. Products are also sold under the highly
regarded brands of Libby’s®, Aunt Nellie’s®, Green Valley®,
CherryMan®, READ®, Seneca Farms® and Seneca labels, including
Seneca snack chips. In addition, Seneca provides contract
packing services mostly through its wholly owned subsidiary Truitt
Bros., Inc. Also, Seneca provides vegetable products under a
contract packing agreement with B&G Foods North America, under
the Green Giant label. Seneca’s common stock is traded
on the Nasdaq Global Stock Market under the symbols “SENEA” and
“SENEB”. SENEA is included in the S&P SmallCap 600, Russell
2000 and Russell 3000 indices.
Forward-Looking
StatementsStatements that are not historical facts,
including statements about management’s beliefs or expectations,
are forward looking statements as defined in the Private Securities
Litigation Reform Act (PSLRA) of 1995. All forward-looking
statements involve risks, uncertainties and contingencies which may
cause actual results, performance, or achievements to differ
materially from anticipated results, performance, or
achievements. Factors that may cause actual results to differ
materially from those in the forward-looking statements include
those set forth in Seneca Foods Corporation’s filings with the SEC,
including the disclosure under the heading “Risk Factors” in Seneca
Foods’ Annual Report on Form 10-K. We are under no obligation
to update or alter our forward-looking statements, whether as a
result of new information, future events or otherwise.
Contacts: Timothy J. Benjamin, Chief Financial
OfficerSeneca Foods Corporation315-926-8100
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