Printer Friendly

SHUTDOWN OF OPERATIONS COMMENCES AT SYLVAN FOODS HOLDINGS, INC.'S MOONLIGHT MUSHROOMS SUBSIDIARY

 SARVER, Pa., Nov. 4 /PRNewswire/ -- Sylvan Foods Holdings, Inc. (NASDAQ: SYLN) today announced that its Moonlight Mushrooms, Inc. subsidiary commenced a previously announced shutdown of its operations following Wednesday's rejection by its unionized employees of a proposed package of wage and benefit cost reductions which Moonlight's management said were necessary to restore the company's profitability.
 Efforts by company officials and by various municipal and state officials, including the proposal by Pennsylvania's acting governor, Mark Singel, of a plan calling for employee equity ownership of Moonlight, failed to secure the approval of the new agreement by vote of members of Local 8025 of the United Steelworkers of America. The shutdown should be completed by no later than January 1994 and will result in the elimination of approximately 965 jobs at the Worthington, Pa., mushroom farm.
 Sylvan Foods Holdings, Inc. said the amounts of the charges and other costs arising out of the shutdown are not currently available and it declined to estimate the impact that the shutdown will have on the company's profitability. However, Moonlight experienced a $9.9 million loss in the first quarter of 1993 in connection with the required adoption of an accounting standard covering postretirement medical benefits and it has recorded operating losses since the middle of the 1992 calendar year.
 Sylvan Foods Holdings, Inc. is the leading worldwide producer and distributor of mushroom spawn and other spawn-related products and services and the third largest domestic grower and marketer of fresh mushrooms.
 -0- 11/4/93
 /CONTACT: Bill Mooney of Sylvan Foods, 412-295-3910/
 (SYLN)


CO: Sylvan Foods Holdings, Inc.; Moonlight Mushrooms, Inc.;
 United Steelworkers of America ST: Pennsylvania IN: FOD SU:


DM-CD -- PG011 -- 0659 11/04/93 11:13 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 4, 1993
Words:283
Previous Article:AMEX TO OPEN OPTIONS TRADING ON AMEX-LISTED THE HILLHAVEN CORPORATION AND OMEGA ENVIRONMENTAL, INC.
Next Article:CAMPBELL, NAKANO FORM JOINT VENTURE TO MARKET SOUP IN JAPAN
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters