Gordy’s Chippewa Foods Prepares For Mass Layoffs If Unable To Sell Operations

On August 29, 2017, Wisconsin’s Department of Workforce Development received a WARN Notification from Gordy’s Chippewa Foods. The company notified the State that the Gordy’s Entities are the subject of a receivership. The purpose of the receivership is to try to find a suitable buyer to purchase the company’s assets. In the event that the company is unable to find a suitable buyer or the buyers are not willing to hire all of the company’s employees, a mass layoff or plant closure will take place.

The separations could take place within 60 days of the letter submitted to Wisconsin’s Department of Workforce Development. If the company is unable to find a buyer and is ultimately forced to close its stores, it is expected that 1,008 employees will be permanently laid off. The impacted employees include union and non-union workers.

If the Gordy’s Entities are purchased and continue to be operational, there is a possibility that circumstances could change and employees may not be laid off. Gordy’s admits that it is impossible for them to determine which employees, if any, will be affected. The company has also confirmed that employee healthcare benefit coverage could be terminated within 60 days of the date of the WARN letter.

In total, there are 25 Gordy’s stores that could be impacted. All stores are located in the state of Wisconsin. Earlier this month, Fortis Management Group and Appleton Coated LLC also announced layoffs in the state of Wisconsin.