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Snyder's of Hanover - Working to Keep Jays Products in Chicago

Hanover, PA (PRWEB) December 7, 2007 -- Snyder's of Hanover, Hanover, Pennsylvania, officially acquired Jays Foods, Chicago, on Tuesday, December 4 after a bankruptcy auction was held in Chicago on November 30. Shortly after the Judge approved the transaction, Jays Foods officially closed their doors. Through the purchase of their assets, Snyder's of Hanover will continue to produce Krunchers!? Kettle Chips, O-KE-DOKE? Popcorn and Jays? Potato Chips.

"We are pleased to be able to keep the Jays' tradition alive in Chicago," said Carl E. Lee, President and CEO of Snyder's of Hanover. "Within a very short time, our team was able to successfully formulate a plan to keep jobs and a physical presence in Chicago and the Mid-West. With our acquisition the beloved Jays products will continue to be available."

The Snyder's plan includes offering jobs to some 420 former Jays' employees, about two-thirds of the current workforce. These jobs are primarily located in Chicago, Illinois and Jeffersonville, Indiana.

"There has been some confusion about the loss of jobs," noted Lee. "From a difficult bankruptcy situation, we have worked very hard to keep as many people employed as possible. In the absence of a qualified buyer, the outcome could have been the elimination of all Jays and Select Snacks jobs. We have prevented that from happening."

In addition, after learning of Jays' leaderships' plans to discontinue employee benefits due to lack of funds during their last week of ownership, Snyder's of Hanover stepped in to ensure that the employees were fully covered during this time. Snyder's increased their final bid offer to pay for these benefits.

The 99th Street facility, which was not owned by Jays was leased from a third party. This lease was terminated with the dissolution of Jays Foods. Some of the equipment from this plant will be moved to other facilities, but much of the equipment used in this plant is outdated and will be sold at auction. The 99th Street plant only produced a portion of Jays' products. The majority of production had already been shifted to the Jeffersonville, Indiana plant by the prior management.

Snyder's will continue to operate distribution facilities in the Chicago area. Part of the purchase agreement included 185 direct store delivery distribution routes in Illinois, Indiana and Wisconsin. This will strengthen Snyder's current distribution network.

Founded in 1909, Snyder's of Hanover TM is a privately held company that, prior to the acquisition, employed 1,975 associates and operated 1,605 distribution routes nationwide. Snyder's of Hanover is headquartered in Hanover, PA, which is the location of its flagship snack food manufacturing and distribution center. This location produces and distributes products to the eastern half of North America, the Caribbean, and Europe. The Goodyear, Arizona plant produces products for the Western half of the United States and Pacific Rim countries.    

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