Golden Flake snacks will be sold, but no longer made in Birmingham

1 year ago 22

A Pennsylvania company will no longer make Alabama's iconic Golden Flake snacks in Birmingham, although it will still sell them.

Utz Brands said Wednesday that it will close the longtime factory in early July, laying off 175 workers. Utz said about 100 employees will continue working at a new warehouse in Birmingham to distribute the snack foods.

"The decision reflects the company’s dedication to network optimization and cost containment," Utz, based in Hanover, Pennsylvania, wrote in a filing to investors.

Utz said it would spend $3 million to $5 million on the closure, including $1.5 million in employee severance payments, with the rest being spent to transfer production. The company said it "expects no distribution or availability issues" because of the factory closing. The company said it would also mark down the value of its assets by $8.5 million to $11 million.

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Utz bought Golden Enterprises,...

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