Candy maker Farley's & Sathers is shuffling jobs, bringing new work to Chattanooga but shipping some local manufacturing to other sites.
"It's premature to say how many (workers) will be impacted," said company spokeswoman Michelle Graber about its Chattanooga operations. "We hope it won't be a loss."
She said Friday the candy maker has about 450 workers at its two Chattanooga locations.
The company intends to transfer packaging, warehousing and fleet operations from its Round Lake, Minn., headquarters to Chattanooga and Dallas, Texas.
As a result, cuts at the Minnesota facility are expected to affect 175 of its 325 employees.
Also, the company said its manufacturing of sugared candies at the Chattanooga Jersey Pike factory will move to newer, more advanced equipment in other facilities. Ms. Graber said some of that production will shift to the company's Chattanooga plant on Cummings Road.
"There will be some positions opening on Cummings Road," she said. "We also have other facilities that will pick up that capacity."
Ms. Graber said the Jersey Pike location will continue to make chocolates.
J.Ed. Marston, the Chattanooga Area Chamber of Commerce's vice president of marketing, said the decision to transfer some operations to the city is "a strong indication of its continued commitment to our community."
Liam Killeen, the company's chief executive, said in a statement that as the business grows, customers require it to be innovative and cost competitive.
"The changes...will enable us to build on our momentum," he said. The changes are to be implemented by the first quarter 2010.
Two years ago, privately held Farley's & Sathers, already on Cummings Road, bought Brach's Confections, including the Jersey Pike plant. It bought Brach's from Switzerland-based chocolate company Barry Callebaut AG.
Brach's had itself acquired Brock Candy Co., a longtime Chattanooga manufacturer, in 1994.
Farley's, owned by private equity firm Catterton Partners Corp., makes such brands as Chuckles, Now and Later and Brach's.
If I was a Sather, I would request my named removed from the company. The Sather family wouldn't have wanted this to happen to their business--this is what happens when investors have no connection or loyalty to the community. Let the Catterton Partners Group build up their own good name and loyalty.The late Kenny Sather is looking down on this and saying some choice words, I'm sure. And to Mr Marston of the Chattanooga C of C, who said it's "a strong indication of its continued commitment to our community" ---that's what we (Round Lake) used to think.....