Blommer Chocolate Company, a stalwart in the Chicago confectionery industry for 85 years, is set to shut down its original manufacturing plant in the Fulton River District, resulting in layoffs for over 200 employees. The company cited "growing maintenance and operating costs" for the building and aging equipment as grounds for the closure, which begins at the end of May. This move will see the 226-worker strong force diminished, as detailed in a filing under the Illinois WARN Act, CBS Chicago reported.
Located at 600 W. Kinzie St., the plant's closure was attributed to "the location and age of the facility, coupled with increasing repair and maintenance of the building and equipment," exacerbating operating costs and reliability issues, a statement from Blommer explained. However, the exact future of the 5.5-acre site remains unspecified by the company. These layoffs hail as cocoa and chocolate companies worldwide feel the squeeze from global shortages, with cocoa costs skyrocketing to nearly $10,000 a metric ton, according to Crain's Chicago Business.
While the manufacturing operations wind down, Blommer's corporate presence in Chicago won't be entirely melting away. The company plans to retain and expand its corporate headquarters at the Merchandise Mart, investing in an innovative research & development center slated to open this fall. In a vision to consolidate and modernize its production capabilities, Blommer is pouring $100 million into expansions at its remaining facilities across Pennsylvania, California, and Canada.
The confectioner's layoff announcement comes as the industry faces a shuffle with global giants like Barry Callebaut AG also shuttering factories and laying off a chunk of its workforce—around 2,500 jobs. All this, as reported by Crain's Chicago Business, frames a bittersweet reality for the cocoa and chocolate sector, with Blommer being just one of several companies restructuring amid economic pressures. The world’s largest bulk chocolate maker frets over facility closures in Germany and Malaysia amidst these turbulent market tides.
