Hammond’s Candies to close Old Dominion Peanut’s plant
The decision was made after a six-month analysis of the company’s current operations and future needs of its customers. It came in the wake of “the neighborhood in transition from manufacturing and warehousing, to retail and upscale residential apartments, higher operating costs, and lack of efficiencies operating out of multiple buildings,” said the company.
Hammond’s Candies, headquartered in the state of Colorado, produces a variety of sugar confectionery products and chocolate. It acquired Old Dominion Peanut in 2013 to expand its snack offerings, according to the company’s website.
Andrew Schuman, president and CEO at Hammond’s Candies, said, “Business decisions that directly impact our employees are extremely difficult” as Old Dominion Peanut has operated in Norfolk for over 100 years.
“The plant closure does not reflect the end of the Old Dominion Peanut Company, rather it marks the beginning of the next chapter of our business operations for long-term health,” he said. It is also expected to drive future profitability of Hammond’s Candies’ core business, Schuman added.
Schuman mentioned part of the Old Dominion Peanut’s operations will be relocated to Hammond’s Candies’ headquarters, and certain production of its products will be transferred to a third party under a long-term co-manufacturing agreement.
The Norfolk facility currently employs approximately 70 wage and salaried workers and produces products including peanut brittles, nut candies and chocolate covered nuts.
Hammond’s Candies is enlisting the aid of the Virginia Employment Commission and communities to “allow workers the maximum access to public services and ensure a seamless transition for our employees,” the company said.
