Yarnell’s Ice Cream to close; 200 jobs lost
by June 30, 2011 10:52 am 73 views
Editor’s note: Roby Brock, with our content partner Talk Business, wrote this report. He can be reached at [email protected]
Talk Business has learned that Yarnell’s Ice Cream Co., the iconic Searcy-based ice cream firm, is closing.
A source within the company confirms that the news is true, but details have not been released with specifics.
The company issued this statement Thursday morning (June 30):
Yarnell’s Premium Ice Cream ceased operations today after the Board of Directors voted yesterday to end production indefinitely. The privately owned company, headquartered in Searcy, Ark., told its approximately 200 employees today that they would be paid through every day worked but not beyond that.
“This has been an extremely tough year for the ice cream industry in general, and particularly to regional, independent manufacturers like ourselves,” said Christina Yarnell, chief executive officer of Yarnell’s. “We have examined many possible avenues to keep the company afloat – actively marketing the company to investors and strategic buyers – the majority of whom are undergoing the same financial distress we are. However, we’ve been unable to obtain additional financing from our lenders or locate a buyer, and have come to the difficult decision that the appropriate course of action is to shut our doors.”
Approximately 75 percent of Yarnell’s employees work at the Searcy headquarters, with the rest of the employee base located throughout the state and in Tennessee and Mississippi. A small team will remain working for the company to finalize operations, with completion expected by Aug. 27.
“Yarnell’s has been an Arkansas staple for more than 75 years, and it’s been a family business that started with my great-grandfather, Ray, and has involved four generations of the Yarnell family. Ceasing operations is heartbreaking because we have prided ourselves on keeping our roots in Arkansas, particularly Searcy.
“We are truly thankful for our amazing employees and the heart and soul that they have put into the past successes of this company. They are great people. And I can’t say enough about our customers and their loyalty to Yarnell’s. It’s been a pleasure creating the highest quality ice cream that they can be proud to serve to their families and friends. I, personally, will miss hearing their wonderful feedback and encouraging comments.”
Sales of ice cream and related products have steadily declined over the past five years across the United States. In order to compensate for declining sales, the larger manufacturers continue to jockey for retailers’ shelf space through price competition. This, along with steadily increasing commodity prices (cream, sugar, fuel, etc.), has resulted in significant financial damage to regional ice cream manufacturers such as Yarnell’s.