Awrey Bakeries appears to be preparing to sell its assets in an online auction Feb. 20-21, but sources familiar with the company are indicating that the company is still talking with potential buyers or investors to keep the century-old business operating.
But hope is fading fast.
Employees were notified in late November that Awrey could lay off about 150 workers — and possibly shut down — due to economic conditions unless a buyer or investor is found. A letter was delivered to United Distributive Workers, Council 30, by certified mail giving written notice. By federal law, Awrey must give workers — or their union representatives — at least 60 days’ notice.
The company also filed a federally required notice to the state confirming it plans to shutter its facility and lay off 203 employees in 60 days. That notice stated the company “will be forced to close its entire Livonia, Michigan facility … as the result of economic conditions.”
The company has 157 union employees and 46 non-union workers, according to the notice signed by Awrey CEO Bob Wallace, and will “fully and permanently close” during a 14-day period between Jan. 27 and Feb. 9 unless a buyer or investor is found.
Wallace would not return a phone call for comment on the items listed for auction or whether the company had any buyers or investors interested in purchasing or investing in it. Other non-company sources have indicated that they have heard that there are interested buyers in the company, even as the assets are listed on the auction site.
Workers remain in limbo this week.
Brian Corrigan, who works in general utility and is a union steward with Council 30, said he was laid off through this weekend and next week. Corrigan said he will have worked at the bakery for 35 years in June 2013.
“They haven’t told us anything,” Corrigan said. “The majority of the plant has been shut down since the last Tuesday before Christmas, which was the last production we had. They’re not bringing in supplies for us to make product.”
He said a supervisor had told him that another company was interested in purchasing Awrey, but that he had not heard that from his union or the company’s top brass.
Corrigan learned of the items listed for auction over the weekend from friends. “I was trying to keep my hopes up that somebody would buy or invest in the company, but it’s hard to stay positive right now,” Corrigan said.
Corrigan said his next scheduled day of work is Jan. 14. “But I was told that they may want us to come back a couple of days next week,” Corrigan said.
Council 30 agreed to a wage cut in late May to help keep the company from closing its doors. The union voted to accept a $1 cut in members’ hourly wage at that time and a second 85-cent cut in September. The 160-member union voted to accept the wage cuts in a 97-38 vote.
The Website rabin.com lists the auction items, describing Awrey’s as “one of the largest privately owned bakeries that produced fresh and frozen pastries, breads, cakes, donuts, biscuits and muffins.”
The list reflects the production end of Awrey’s, which just celebrated its 100-year anniversary two years ago. Six 120,000-pound flour and sugar silos, 7,500 to 15,000 cone bottomed flour hoppers, mixers, kettles, cooling pans, chocolate melters and filling pumps are all listed.
Mayor Jack Kirksey said he was told that Wallace was still negotiating with potential buyers and hoped Wallace could complete some transaction to keep Awrey’s doors open.
Kirksey admits that those efforts have continued for months and believes that a deal would have been made already if it was in the works.
“There could be a potential buyer there,” Kirksey said. “Employees there are skilled, trained and committed to the company’s future, and continue to produce a quality product. But in its final days, and it appears very likely that the company very well may not make it, that (Awrey’s closing) will be a very sad moment in time, if it happens.”
Dan West, president of the Livonia Chamber of Commerce, hasn’t lost hope about the company. “While news of scheduled Awrey’s liquidation auction is sobering, the company continues talks with potential buyers.” West said.
kabramcz@hometownlife.com (313) 222-2591 Twitter: @KenAbramcz