Frozen food delivery company Yelloh, formerly known as Schwan’s Home Delivery, will be ending operations before the end of the year.
The company announced on Monday it would end operations in November after 72 years in the business. Yelloh cited several “insurmountable” business challenges for its closure, including economic and market forces and changing consumer lifestyles.
Michael Ziebell is a board member who has worked with the company for over 22 years, previously in leadership roles in the 1990s and early 2000s. In a news release, he said the company struggled against nationwide staffing problems and food supply chain interference caused by the pandemic.
“These challenges, combined with changing consumer lifestyles and competitive pressures that have been building for over 20 years, made success very difficult. Digital shopping has replaced the personal, at-the-door customer interaction that was the hallmark of the company,” Ziebell said.
Yelloh CEO Bernardo Santana said in a statement that the decision to shut down operations was difficult and thanked customers and employees.
“We are thankful to our many loyal customers and hard-working employees for everything they have done to support us. I am deeply grateful for our employees’ tireless and bold efforts, and our customers’ dedication. It has been our utmost pleasure and honor to serve our customers their favorite meals and frozen treats.”
“Our concern is now for our employees and caring for them as we all come to terms with the fact that this business – that served millions of families and provided a livelihood for thousands over the decades – has regrettably run its life cycle,” Ziebell said.
Yelloh’s History
Founded in 1952 by Marvin Schwan in Marshall, Minnesota, Schwan’s Company was a trailblazer in the home delivery of frozen foods. According to the news release, the company developed into a countrywide leader in frozen food delivery with the country’s largest fleet of freezer trucks.
In 2018, South Korean company CJ CheilJedang acquired an 80 percent stake in Schwan’s Company for approximately $1.84 billion. The home delivery service was not part of the sale and stayed independent and owned by the Schwan family, the Yelloh website states.
In March 2022, the company announced its plan to rebrand from Schwan’s Home Delivery to Yelloh. Following the rebrand, Yelloh released a statement in October 2023 reporting the closure of approximately 90 Yelloh delivery centers and the layoff of 750 employees. The company said it was facing difficulties in economic growth and rising business costs in the post-pandemic world.
Yelloh currently employs around 1,100 nationwide and said it will slow down operations over the next two months to care for employees. The last day to purchase products using food trucks will be Friday, Nov. 8.