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Business and Economic News
Hannah Yang
Updated:

Minnesota-based company Yelloh, once better known as Schwan’s, announces November closure

A Schwan's food delivery truck
A Schwan's Home Delivery truck, pictured in 2010. The iconic company, which delivered food to customers' homes for decades -- and was known as Yelloh in recent years -- announced Monday that it is ending operations later in the year.
Schwan Food Company via AP | 2010

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Citing “insurmountable business challenges” Marshall-based Yelloh says it will end its frozen food deliveries on Nov. 8.

Founded in the southwestern Minnesota city 72 years ago with an initial run of ice cream, the company — known as Schwan’s Home Delivery until 2022 — was a pioneer in the frozen food home delivery industry. Its fleet of yellow trucks fanned out across the country delivering food to families where they lived.

However the company says economic and market forces, as well as changing consumer lifestyles, led to a sell-off of a major chunk of the business to a Korean company a few years ago and a rebranding as Yelloh.

Yet, challenges remained — the company closed 90 delivery centers and laid off about 750 employees last fall. Now comes the decision to close.

In a statement Monday, CEO Bernardo Santana said it was with “heavy hearts” the company had made the difficult decision to end operations.

“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” he said.

Also in the statement, longtime board member Michael Ziebell said the concern now was for the impact on employees.

“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. “Digital shopping has replaced the personal, at-the-door customer interaction that was the hallmark of the company.”

The Minnesota Department of Employment and Economic Development reported the closure of Yelloh will affect 176 employees in Minnesota.

MPR News reached out to the city of Marshall for comment, but did not hear back before publication.

Yelloh — the former Schwan’s home delivery business — is separate from Schwan’s Company, which continues operations serving retail, grocery and food-service customers. The home delivery business was split off in 2019 when new majority owners took over Schwan’s Company.