Yelloh to close in November
MARSHALL — The end of the road is coming for the iconic yellow trucks.
On Monday, food delivery company Yelloh announced it will cease all operations in November. In a news release, the company said it will wind down over the next two months.
“It’s with heavy hearts that we made the difficult decision to cease operations of Yelloh,” said CEO Bernardo Santana. “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.”
“As it is for the people of Yelloh, closing this company is a heartbreaking decision for me personally,” said Yelloh board member Michael Ziebell. Ziebell was a 22-year veteran of the company, holding leadership roles in the 1990s and early 2000s before returning as a board member.
“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.
The news of Yelloh’s closure comes after layoffs and cuts to the company’s service area over the past year. In October 2023, Yelloh said it was closing 90 delivery centers and laying off 750 employees nationwide. In June, the company announced it was laying off 44 Minnesota employees and closing delivery sites in six Minnesota cities.
In Monday’s news release, Yelloh said the company faced “insurmountable business challenges” leading to the decision to shutter operations.
“The current Yelloh team has worked hard against external headwinds such as the nationwide staffing challenges and crushing food supply chain disruption caused by the pandemic,” Ziebell said. “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.”
The news release said Yelloh will be giving employees notice and pay in accordance with the WARN act. The last day products may be purchased via Yelloh trucks will be Friday, Nov. 8.
Yelloh got its start in 1952, when Marvin Schwan started delivering ice cream in the Marshall area. The company grew to a nationwide frozen food manufacturing and delivery business, with a fleet of yellow freezer trucks.
In 2018, Schwan’s Company was purchased by Korean firm CJ CheilJedang. The Schwan family kept ownership of the home delivery service portion of the business. In 2022, Schwan’s Home Delivery announced it would rebrand to Yelloh, as a nod to the original yellow Schwan’s vehicles.
Source: Marshall Independent