Bakery’s Sudden Closure Leaves 200 Jobless

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

Employees found a sign on the plants’ doors saying 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 customer base and capabilities.

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

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

Several employees there told WYFF News 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, primarily citing the ongoing impacts of COVID-19 on its ability to perform financially. 

Muffin Mam said initial lockdowns hurt revenues, followed by dwindled available skilled labor, and then the recent supply chain disruptions and rapid rising costs were the final blows that led its board’s decision to cease operations.

Also on Nov. 10, the company filed for chapter 7 bankruptcy in the US Bankruptcy Court for the District of South Carolina. Its filing shows that Muffin Mam owes almost 6 million dollars 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 stated company assets of less than $50,000.

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