HANOVER, PA. — Utz Brands, Inc. will cease operations at its manufacturing facility in Birmingham, Ala., on or around July 3, a decision the company said reflects its “dedication to network optimization and cost containment.” The plant makes snacks under the Golden Flake brand.
In an April 24 filing with the Securities and Exchange Commission, Utz said the facility closing will cost the company approximately $3 million to $5 million in pre-tax cash charges during the 2023 fiscal year. The charges include $1.5 million in severance costs and $1.5 million to $3.5 million in closing and transfer of production costs. Utz Brands also said it expects to incur non-cash charges of approximately $8.5 million to $11 million in asset impairments, although the actual amounts may change due to timing and local law requirements among other factors. Even then, the company may continue to incur other charges or cash expenditures from the closing and other “unanticipated events that may occur.”
Utz Brands said all products manufactured at the facility will continue to be produced at other company manufacturing facilities while approximately 100 of the 275 employees who work at the facility will be transferred to the company’s Birmingham-based distribution center.
Utz acquired the Birmingham plant as part of its $146 million acquisition of Golden Enterprises in 2016. The Golden Flake brand includes potato chips, pork skins, popcorn, cheese puffs and other snacks foods.