Mass Layoff: Illinois Hit by Fifth Factory Closure This Year.

Photo byChristian ErfurtonUnsplash

Oberweis Dairy, a century-old dairy based in North Aurora, Illinois, has announced it will be laying off 127 workers due to an impending plant closure. The layoffs are scheduled to begin on June 11, following the company's recent filing for Chapter 11 bankruptcy protection. This is the fifth factory closure to hit Illinois this year.

The companies in Illinois that have announced or enacted layoffs since January 2024 include:

• Quaker Oats Company - Announced 510 redundancies as part of moving operations to other factories.
• Blommer Chocolate Company - Notified state officials that the closure of its Chicago factory would result in 226 job losses.
• Rivian - Announced 100 redundancies for workers at its assembly plant in Normal, Illinois.
• Monterey Mushrooms - Laid off 100 workers when it closed its farm in Bureau County.

In total 1063 people have been laid off in these factory closures.

The announcement was made through a Worker Adjustment and Retraining Notification (WARN) filed with the state. The WARN Act requires employers with 75 or more employees to provide a 60-day notice of any plant closures or mass layoffs. According to the filing, Oberweis Dairy currently employs 1,149 workers, with a significant number working part-time.

In addition to the plant closure, the company has expressed its financial distress in its bankruptcy filings, noting it owes over $4 million to its largest unsecured creditors and about $14 million in secured bank debt. The financial strain has been compounded by increasing consumer preference for dairy alternatives and costly capital expenditures.

As part of its bankruptcy proceedings, Oberweis Dairy has also filed a motion to ensure the payment of $340,000 in outstanding wages to its employees, reflecting the company's ongoing commitment to its workforce amid these challenging times.