Clabber Girl in Terre Haute will be laying off 25 employees starting Aug. 31, the company said today.
The layoffs are to begin Aug. 31 and will continue through the end of the year. The employees have been notified and will receive severance packages, the company said.
Hulman & Co. on May 15 announced the sale of Clabber Girl to B&G Foods Inc. B&G, based in New Jersey, makes and distributes a broad range of food products including Cream of Wheat, Green Giant, Ortega, SnackWell’s and others.
B&G paid $80 million for Clabber Girl, according to a U.S. Securities and Exchange Commission filing.
There are no plans to close or move the Terre Haute facility, which employs approximately 175 people, the company said today.
"We are committed to the success and growth of the Clabber Girl business. In order to grow the business efficiently and maintain scale and productivity, we have made the difficult decision to consolidate certain sales and general administrative functions with our corporate parent," the company's written statement said.
"We are grateful for the dedication and contributions of all our employees, and our community in Terre Haute that continues to embrace Clabber Girl," it said. "Clabber Girl has been a proud member of the Terre Haute community for many years ... While extremely difficult, these actions are necessary for Clabber Girl to remain competitive and continue to grow."
The Hulman family and its employees started manufacturing “clabber” baking powder in Terre Haute in 1899 — two decades before the image of a smiling girl holding a plate of biscuits, graced the blue label on its cans.
The sale trimmed in May Hulman & Co.'s efforts to racing interests. The company owns and operates Indianapolis Motor Speedway, the iconic track that Terre Haute businessman and philanthropist Tony Hulman purchased and resurrected after World War II. The Hulmans’ racing interests also include the IndyCar Series and IMS Productions.
B&G at the time of the acquisition said purchasing Clabber Girl aligned with its practice of obtaining well-established brands with defensible market positions and strong cash flow." It noted Clabber Girl was the No. 1 one manufacturer of branded retail baking powder, as well as a leader in baking soda and corn starch.
Clabber Girl, including its Bake Shop Cafe and Museum, remains at its historic facility at Ninth Street and Wabash Avenue in Terre Haute.