Coborn’s Closing St. Cloud Facility, 90 Laid Off

The company will outsource production to four family-owned facilities in the Midwest; a spokeswoman declined to reveal the impact that the move will have on the company's balance sheet.

One of the state's largest employers, Coborn's, Inc., announced Friday that it is closing a production facility in St. Cloud-a move that will result in 90 employees being laid off.

The grocer notified employees Friday morning about its decision to close the DBC Foods facility in July. The facility produces specialty meat and deli salad products that are sold under the Coborn's and Aunt Mabel's brand names.

According to Coborn's spokeswoman Emily Coborn, employees affected by the layoffs will receive severance packages and will be given first consideration for open positions at other Coborn's facilities.

In addition, Coborn's has partnered with other unnamed food manufacturing companies in the St. Cloud area to help provide employment opportunities for those who lose their jobs, Coborn said.

Coborn's plans to outsource production at the DBC Foods facility to four family-owned food manufacturers in the Midwest-Garden Fresh Foods, Klement's Sausage Company, Kansas City Sausage Company, and Quincy Street, Inc.

The facilities are “larger and more specialized,” which makes for more efficient manufacturing, Coborn told Twin Cities Business on Friday. In addition, the DBC Foods facility, which was built in 1991, needed significant capital reinvestments that the company didn't see as a good investment.

Coborn wouldn't say how the company's move to outsource production will affect its balance sheet, but she did say that it will allow Coborn's to remain competitive.

“Our customers are smart, savvy, price-conscious customers, so we are focused on ensuring that our products are priced competitively in the markets where we do business,” Coborn said.

Coborn's is among the state's largest employers based on its number of Minnesota employees as of June 2010, of whom there were 6,000. The company is also among Minnesota's largest private companies with estimated annual revenue totaling more than $1 billion.