Bakery’s Sudden Closure Leaves 200 Jobless

Employees found a sign on the plant's doors saying its financial assets had been frozen.

Back in November 2019, baked goods manufacturer The Muffin Mam announced the opening of a new 100,000-square-foot bakery plant in Laurens, South Carolina, that looked to grow the company’s capabilities and customer base.

Two years later, the plant abruptly closed, much to the surprise of its 200-plus workers.

Local news reports said that employees found a sign on the facility’s doors Nov. 9 indicating that the plant was closed because its bank had frozen the company’s assets and account.

Several employees told WYFF-TV that workers were given two letters by the company days earlier: one, dated Nov. 8, saying the plant would close on Jan. 7 of next year, and another a day later saying the plant was closing immediately.

On Nov. 10, the company issued an emailed statement explaining the closure, which primarily cited the ongoing impact of COVID-19 on its ability to perform financially. 

Muffin Mam said the initial lockdowns hurt its revenues, and that it was subsequently affected by a shortage of available skilled labor. Recent supply chain disruptions and rapidly rising costs were the final blows that led its board to cease operations.

Also on Nov. 10, the company filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the District of South Carolina. Its filing shows that Muffin Mam owes almost $6 million to 189 creditors, including individual debts of $600,000 to Atlantic Corp., $591,400 to Hardman Distribution, and $382,750 to Creative Baking Solutions. Meanwhile, the filing listed company assets of less than $50,000.

More in Video