Nearly 80 Wisconsinites will lose jobs when Yelloh, formerly Schwan’s, closes in November

A frozen food delivery service that serves customers in eight Wisconsin communities will go out of business in November, resulting in job losses for nearly 80 Wisconsinites. 

Yelloh, formerly known as Schwan’s Home Delivery, made the announcement on Monday, citing “economic and market headwinds,” as well as “changing consumer lifestyles.” 

In a statement, Yelloh CEO Bernardo Santana called the decision to cease operations difficult and thanked the company’s customers and employees for their support. 

“I am deeply grateful for our employees’ tireless and bold efforts, and our customers’ dedication,” Santana said. “It has been our utmost pleasure and honor to serve our customers their favorite meals and frozen treats.” 

The closure plans come after the company announced in May that it would close locations in Eau Claire, Marshfield, Rice Lake and Wausau and lay off 32 employees.

Layoff notices filed with the state this week show the company’s closure will affect 79 workers spread across Green Bay, Fond du Lac, Sun Prairie, River Falls, Prairie Du Sac, Franklin, Fennimore and West Salem. 

The notice says the affected employees will be paid through Nov. 22, and will remain on the company’s benefit plan. It also said permanent layoffs are happening nationwide. Nov. 8 is the last day products can be purchased from Yelloh.

Michael Ziebell, a Yelloh board member, said in a statement the decision to close was heartbreaking. He said the company is now focused on its employees, who “worked hard against external headwinds” like staffing challenges and pandemic-era supply chain disruptions.

“These challenges, combined with changing consumer lifestyles and competitive pressures that have been building for over 20 years, made success very difficult,” Ziebell said. “Digital shopping has replaced the personal, at-the-door customer interaction that was the hallmark of the company.” 

Yelloh’s roots date back to 1952, when it was founded in Marshall, Minnesota, as Schwan’s Home Delivery. That’s where the company still has its headquarters. 

When it launched, the company established a new business model for selling ice cream from the Schwan family’s dairy. It expanded to also offering frozen meals, foods and other treats.

In 2022, the company announced it would phase out the Schwan’s name and transition to Yelloh by 2023. The name was inspired by the company’s yellow delivery vehicles.