140 Jobs at Risk as Post Considers Closing Modesto Plant

St. Louis-based Post Holdings (NYSE: POST  ) , owner of the Post brand, and maker of such familiar boxed cereals as Shredded Wheat, Grape Nuts, and Honeycomb, announced Thursday that, in order to improve efficiency of operations, and "to better position the Company for future growth," it may have to close its manufacturing facility in Modesto, California.

Closure would necessarily affect the 140 employees at the plant. Post will consult with union representatives at the plant before making a final decision. The company expects to know which way it will go by the end of April.

"Excess capacity" is the problem, explained Post President and Chief Operating Officer Terence E. Block. "This initiative, if we proceed, would provide the increased efficiency necessary to compete in today's environment," he said.

Post shares reacted negatively to the news, falling 0.4% in Thursday trading to close at $42.01.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2326524, ~/Articles/ArticleHandler.aspx, 12/22/2014 12:00:41 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement