Yelloh, formerly Schwan's, to close 90 delivery centers and cut 750 jobs

Food delivery company Yelloh, formerly known as Schwan's Home Delivery, has announced the closure of 90 delivery centers, leading to 750 job cuts across the country.

The Marshall, Minnesota-based company announced this week that it will be reducing its only delivery services to within 18 states, including Minnesota as well as Iowa, Wisconsin, and South Dakota.

In the rest of the states in which it operates, it will still provide delivery but via UPS. As a result, the company is closing the 90 delivery centers that service those affected states in early December, with 750 staff in its sales, field and corporate teams set to be laid off.

The company said that it has "valiantly" tried to transform despite "facing economic headwinds, rising business costs, and the post-pandemic world," and called the decision to cut back "heartbreaking."

"Concentrating our high-touch delivery service in fewer locations – in states that are the foundation for our 70-year-old company – is the best path forward for Yelloh," the company statement said.

While no list of impacted delivery centers has been provided, the Twin Cities Business Journal reports that Washington, Colorado, and Tennessee are among the states impacted.

Yelloh will continue to operate its own frozen food delivery services in: Delaware, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Pennsylvania, South Dakota, Texas, Vermont, West Virginia and Wisconsin.

Customers across the country will still be able to order food online, via its app, or by calling the company, with deliveries in other states carried out by UPS.

The company switched its name from Schwan's to Yelloh as part of a rebranding last year, with the name a nod to its famous yellow delivery trucks.