The Minnesota-based food delivery company formerly known as Schwan’s Home Delivery is closing two of its Indiana delivery centers. In a notice to the state, Cygnus Home Services LLC—which does business as Yelloh—said it will be ceasing operations in Elkhart and Muncie, which will impact 21 employees. The company stated that despite their efforts to turn their business around locally, they do not see a profitable path forward for these depots. They are committed to taking care of their impacted team members and supporting customers in transitioning to online or app-based ordering solutions.
The layoffs are scheduled to take place on July 27th. The affected workers are not represented by a union and do not have bumping rights. The company mentioned that separation benefits will be provided to the workers, although they did not specify what those benefits would entail. This announcement comes eight months after Yelloh detailed plans to close 90 delivery centers and cut 750 jobs nationwide.
Schwan’s began home delivery in 1952, and in 2018, the Schwan family sold a 70% share of its business to the Korean firm CJ CheilJedang for $1.8 billion. However, the family retained ownership of the Schwan’s Home Delivery business and rebranded it as Yelloh in 2022. In Indiana, Yelloh still has several delivery centers in Danville, Decatur, Evansville, Monticello, North Vernon, Terre Haute, Valparaiso, Wabash, and Washington. The Associated Press contributed to this report.