A bakery controlled by Maple Leaf Foods (TSX:MFI) is shutting down two factories and eliminating approximately 121 jobs in a cost-cutting move.
Canada Bread Co. Ltd. (TSX:CBY) said Wednesday that it will close its bakery in Grand Falls, N.B., and a bakery in Edmonton.
The company says that approximately 75 jobs will be eliminated in Grand Falls, while about 46 jobs will be eliminated in Edmonton.
The Grand Falls shutdown will occur on June 28, while the Edmonton plant closes on March 30.
The company says the closures are necessary due to rising costs for raw materials and a need for the company to become more efficient.
The company will shift production of English muffins made in Grand Falls to other factories, and stop making a variety of cake products and sweet goods.
The raisin and garlic breads and foodservice products made in Edmonton will be shifted into other bakeries.
Chief executive Richard Lan says severance, decommissioning and asset write-downs are expected to amount to approximately $6.3 million before tax, $4.3 million of which is cash expenses.
Canada Bread is 90 per cent owned by Maple Leaf Foods Inc.