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Round Lake Farley's & Sathers to close

Farley's & Sathers and Ferrara Pan Candy Company recently completed their merger to create Ferrara Candy Company. Bringing two companies together results in many opportunities, but also requires some necessary changes as part of integration planning.

Accordingly, today we are announcing a number of important, but difficult, changes to the Company's organizational structure, which will primarily impact our operations in Round Lake, MN and Chattanooga, TN.

The headquarters of the new Ferrara Candy Company will be based in Chicago, which will result in the closing of Farley's & Sathers' Round Lake facility in a phased process that will begin this summer through the spring of 2013. In addition, the packaging and distribution functions at Cummings Road in Chattanooga will be consolidated into existing facilities within the newly combined network. As a result, the Cummings Road facility will be closed in the fall of 2012. In addition, the Sather Trucking Company based in Chattanooga will be closed in the fall of 2012.

These transitions are a logical result of the merger. Together, we are creating a leading general line candy manufacturer that is more efficient and well-positioned to grow faster and take innovation to the next level.

Unfortunately, this impacts positions in Round Lake and Chattanooga. We value the dedication and hard work of all of our employees and are committed to providing assistance to ease the transition for those affected, including providing severance, outplacement services and internal opportunities. We will also be working closely with local government officials and State agencies to identify new potential opportunities.