US crack­down forces out 800 Aryzta staff

Sunday Independent (Ireland) - Business & Appointments - - FRONT PAGE - Saman­tha Mc­caugh­ren

IR­ISH-SWISS food gi­ant Aryzta is fac­ing con­tin­u­ing losses at its US Clover­hill fa­cil­i­ties fol­low­ing an im­mi­gra­tion crack­down which forced out 800 work­ers.

More than a third of its staff had to leave the US op­er­a­tion af­ter a fed­eral au­dit of a third party staffing agency found that hun­dreds of work­ers did not have the cor­rect pa­per­work.

The au­dit took place ear­lier this year and Aryzta, now headed by new ceo Kevin Toland, told in­vestors it was strug­gling to re­place the skilled bakers.

The firm said: “As th­ese in­di­vid­u­als had sig­nif­i­cant knowl­edge and ex­pe­ri­ence of the bak­ing process and rep­re­sented over one-third of the work­force at th­ese fa­cil­i­ties, there has been a sig­nif­i­cant de­crease in the labour ef­fi­ciency and pro­duc­tion vol­umes. Th­ese lo­ca­tions in­curred €16.3m of losses dur­ing June and July 2017, which is ex­pected to con­tinue to im­pact the busi­ness dur­ing full-year 2018.”

The com­pany said it lost the 800 work­ers within six weeks. “We had to re­cruit and train our peo­ple who had no ex­pe­ri­ence in this area in a very short pe­riod,” it said.

Mean­while, a process to sell Larousse Foods will be­gin this week, with a man­age­ment buy­out backed by pri­vate eq­uity tipped as a likely out­come. Among those ex­pected to be in­ter­ested is Car­lyle Car­di­nal Ire­land.

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