Conagra plans to shutter offices at 1600 Pearl Street in Boulder by Dec. 31, 2019. Christopher Wood/BizWest.
BOULDER — Conagra Brands Inc. will permanently close the Boulder office of Pinnacle Foods Inc., parent company to Boulder Brands, and let go of 100 workers. Conagra is also doing away with the Boulder Brands name, and its products will be available under the Conagra Brands umbrella.
The closure is permanent and will affect all employees. The office is expected to close on Dec. 31. Layoffs will begin on May 24 and continue through March 20, 2020. Any employee whose last day is after Dec. 31, 2019, will work remotely.
Certain affected employees are being offered ongoing employment, including at other Conagra office facilities. Affected employees are not represented by a union, and no employees at the Boulder office have bumping rights.
Cummins added that the decision was made to consolidate locations.
In June 2018, Conagra announced its plans to acquire Pinnacle Foods for $10.9 billion. Pinnacle is the parent company of Boulder Brands, known for making products such as Udi’s, Glutino and Earth Balance. Boulder Brands was acquired by Pinnacle in 2016.
However, Cummins said that Conagra is doing away with the Boulder Brands umbrella name. Its products will be available in the marketplace, produced by Conagra.
As to the 100 affected employees, Cummins said Conagra is meeting with each individual to discuss what the decision means to them and their opportunities at other locations.
Boulder Brands is not the only Boulder Conagra company that was subjected to this decision. Thanasi Foods, which was purchased by Conagra in 2017, is closing as of March 1, 2019. Thanasi brands — Duke’s and Bigs — are being integrated into Conagra’s operations in Chicago and Omaha, Neb.
Clif Harald, executive director for the Boulder Economic Council, said that it’s not uncommon when a multinational company, such as Conagra, purchases another multinational company, such as Pinnacle, for a business unit like Boulder Brands to get swept up in the activity.
Harald added that because of that, he doesn’t see this as a referendum on Boulder Brands or on Boulder’s status as a natural-foods center.
“It’s as diverse and well-established as it’s ever been,” he said.
That being said, Harald noted that it is sad that Boulder Brands will no longer be in Boulder.
Harald said his focus is now on helping to support the 100 employees who have lost their jobs due to the decision to close the office. He said he’s already been in touch with Workforce Boulder County and the city of Boulder to find ways to support the employees and make their transition smooth. He added that, given Boulder’s robust natural-foods scene, he’s optimistic that many of them will be able to find work soon.
Conagra said in its quarterly earnings report, dated Nov. 25, 2018, that it expects to make cost synergies in excess of $215 million per year when its integration of Pinnacle is concluded. Conagra went on to add that in Dec. 2018, its board of directors approved a restructuring and integration plan related to its acquisition of Pinnacle. Conagra said it expects to incur up to $290 million in charges related to the integration. That figure includes a possible $205 million in severance and related costs.
Boulder Brands was founded as Boulder Specialty Brands Inc. in 2005. In 2007, it changed its name to Smart Balance Inc. when it acquired GFA Brands Inc., parent company to the Smart Balance and Earth Balance brands. In 2013, the company rebranded again to Boulder Brands and moved to its downtown headquarters on Pearl Street.
The layoffs are the second blow to the Boulder Valley economy in a month. In January, AstraZeneca PLC announced that it would close its plants in Boulder and Longmont, eliminating 210 jobs.