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Yelloh, formerly known as Schwan's Home Delivery, to shut down in November

By FOX 9 Staff
Published  September 23, 2024 6:25pm CDT
Business
FOX 9

The Brief

    • Yelloh, formerly known as Schwan's Home Delivery, announced it will cease operations in November 2024 due to economic challenges and changing consumer behaviors.
    • The company, founded in 1952, was a leader in frozen food delivery and had the largest fleet of freezer trucks in the U.S.
    • The final day to place orders will be November 8, 2024, as the company winds down over the next two months.

MARSHALL, Minn. (FOX 9) - After more than seven decades, the Minnesota frozen food home delivery company that used to go by Schwan's Home Delivery is set to close.

What do we know

Yelloh announced on Monday it would permanently cease operations in November 2024. After 72 years in business, the company cited numerous economic challenges and evolving consumer behaviors as key reasons for the closure.

The company will take the next two months to wind down operations. The last day to purchase products will be Friday, Nov. 8.

Background

Founded in 1952 and based in Marshall, Minnesota, Schwan's Company became a leader in the home delivery of frozen foods. The company's news release notes Schwan's became the country's largest frozen food delivery company with the largest fleet of freezer trucks.

In 2018, the business was split, with the Schwan's Company being sold to a South Korean company for $1.8 billion. The delivery side of the business, Schwan's Home Delivery, was not part of the sale. In 2022, Schwan's Home Delivery announced it would rebrand, going from Schwan's to Yelloh.

Schwan's Company is still in business, selling foods through grocery stores and food service venues.

What are they saying?

In a statement, the company CEO Bernardo Santana wrote:

"It’s with heavy hearts that we made the difficult decision to cease operations of Yelloh. We are thankful to our many loyal customers and hard-working employees for everything they have done to support us. I am deeply grateful for our employees’ tireless and bold efforts, and our customers’ dedication. It has been our utmost pleasure and honor to serve our customers their favorite meals and frozen treats." 

On the financial troubles the company faced, Board Member Michael Ziebell added:

"The current Yelloh team has worked hard against external headwinds such as the nationwide staffing challenges and crushing food supply chain disruption caused by the pandemic. These challenges, combined with changing consumer lifestyles and competitive pressures that have been building for over 20 years, made success very difficult. Digital shopping has replaced the personal, at-the-door customer interaction that was the hallmark of the company."